The Passive Investing Strategy That Will Make You A Millionaire on Autopilot

With inflation eating into the value of fiat currency, it’s more important than ever to start investing your money to build wealth.

But, one thing so many new investors don’t realise is that the less time you spend investing, the more money you make.

The perfect strategy for beginners?

Set & Forget Investing.

So today, I’ll be talking more about this strategy, why it’s great for beginners, and how you can maximise efficiency when investing your disposable income.

What is Set-And-Forget Investing?

Set and forget investing is a self-explanatory strategy in which you, don’t prioritise return, but instead prioritise efficiency.

Getting the best return, for the least amount of work put in.

This means:

• No trading.

• No constant buying and selling.

• No market research.

• No buying the dip.

You’re setting up an account with regular deposits, and leaving it to do it’s thing.

A lot of beginner investors get caught up in the world of investing, thinking they’ll become the next Warren Buffett overnight.

I’ve been there.

And in truth, investing mistakes like overtrading and trying to time the market will only lose you money in the long run.

The investing paradox proves this, and it’s why more investors are deciding to opt for a more passive form of growing your money.

And there isn’t a better way to go than setting and forgetting:

1. Create an investing account.

2. Pick a broad ETF.

3. Automate regular deposits.

4. Forget about it.

Benefits of Set-And-Forget Investing

Here are some of the key benefits of set-and-forget investing:

You’ll Get The Market Average

Sticking with a broad fund like The S&P 500 means you’re getting a great reward, whilst exposing yourself to a risk which is much lower than that of individual stocks.

Funds like:

• The S&P 500

• Total US Stock Market

• Total Global Stock Market

Have netted investors average returns of around 8–10% annually since World War II.

Way better than any return you’ll get in a bank account, especially when you factor in inflation.

Time Can Be Spent Elsewhere

Like I said earlier, one of the key benefits of set-and-forget investing is efficiency.

When you’re spending time trading and researching investments, there’s no guarantee the time you’re investing will be rewarded with a greater financial gain.

In fact, this paradox suggests it’ll have the opposite effect.

So, put your time towards something that you know will generate a better reward:

• Starting a business.

• Reading educational books.

• Watching funny cat videos.

Compound Interest

When you’re investing your money over a long period of time, you’ll soon begin to feel the rewards of compound interest.

Compound interest means earning interest on your initial investment, plus on any interest you’ve already earned, multiplying your investment returns even further.

The best way to describe compound interest is like a snowball going down a hill.

The further it goes, the more snow it picks up, and the bigger it gets.

This is what your investment portfolio will look like if you’re invested over a long period of time, and the set-and-forget strategy can help you with this.

How to Set It Up

Here’s a quick step-by-step guide on how to set up “set-and-forget” investing

Choose An Investment Platform

My preferred pick for beginners would be eToro.

But, take some time to gain knowledge of any tax advantaged accounts in your region, and which companies offer these accounts.

Create Account

Pretty self explanatory.

Like setting up a new bank account, you’ll need personal information like:

• Name

• Address

• Bank details

• Brief investing history

Pick A Broad ETF

The idea here is to simply match the market average, so your time is free to do other things.

Pick an Exchange Traded Fund which tracks a broad index fund like:

• The S&P 500

• Total US Stock Market

• Total Global Stock Market

Which will help you achieve that historic 8–10% annual average.

Automate Regular Deposits

The last thing to do is automate your payments so you can deposit some of your capital into this fund on a regular basis.

It could be:

• Weekly

• Monthly

• Quarterly

It’s up to you, but dollar cost averaging over time will ensure you’re minimising risk whilst still getting healthy returns.

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