How to Automate Your Investing Plan

When was the last time you said to yourself, “I have way too much time, I need more stuff to do?” OK, silly question – especially if you’re one of those with more demands on your time than you can handle. What you’re probably wondering is, “Can I find more free time by automating my routine tasks?”     

Fortunately, there are ways to automate investing.

One common method is systematic investing, which involves investing the same amount into the same investment at regular intervals.

Buying Mutual Funds Automatically

Systematic purchases of mutual funds can be easy at Scottrade. Once a mutual fund position is established and cash is available in your account, you pick the day of the month you would like to invest, indicate the amount you wish to invest (assuming the amount meets the fund’s minimum subsequent investment amount) and Scottrade can automate all purchases on your behalf.

For example, you could invest $200 into an existing mutual fund position in your account on the 16th of each month automatically.* 

Why Automated Investing?

Consistency is the key benefit to systematic investing. Consider the following:

  • It removes the task of having to enter an order each month.
  • It can help eliminate the emotion that can come from deciding when to invest.
  • Over the long term, it can reduce the average cost of the mutual fund positions because you will buy more shares when prices are lower and fewer shares when prices are higher.  

Automate Your Strategy

In addition to setting up systematic investment, there are mutual funds, such as asset allocation funds, that effectively automate an investment strategy or objective. 

An asset allocation fund offers a complete investment portfolio in a single investment. The fund will automatically divide the investments among asset classes such as stocks, bonds and cash. The fund manager can relieve you of having to select individual investments and can keep the portfolio balanced regardless of the market activity.

Scottrade® clients can find asset allocation funds by logging in, going to the mutual fund screener and selecting any of the following Morningstar® categories: Conservative Allocation, Aggressive Allocation, Moderate Allocation and Tactical Allocation.

The key to selecting any mutual fund is to choose one that matches your personal investment strategy or objective. Automating your investment plan with strategies such as these can save you a lot of time, frustration, and in the long run have a positive impact on your investing success.

Question: What ways have you automated your investing plans?

Read Next: How Mutual Funds Can Work for Your Retirement

*A $2 fee applies to each systematic trade execution for no-load mutual funds that are not on the no-transaction-fee (NTF) list. A form to establish a systematic investment plan can be obtained from the Forms Center on our website or by calling your local Scottrade® office. 

The research, tools and information provided will not include every security available to the public. Although the sources of the research tools provided on this website are believed to be reliable, Scottrade makes no warranty with respect to the contents, accuracy, completeness, timeliness, suitability or reliability of the information. Information on this website is for informational use only and should not be considered investment advice or a recommendation to invest.

Investors should consider the investment objectives, risks, charges and expenses of a mutual fund before investing. A prospectus contains this and other information about the fund and may be ordered through www.scottrade.com or through a Scottrade branch office.  The prospectus should be read carefully before investing.

The information and content provided is for informational and/or educational purposes only. The information presented or discussed is not, and should not be considered, a recommendation or an offer of, or solicitation of an offer by, Scottrade or its affiliates to buy, sell or hold any security or other financial product, or an endorsement or affirmation of any specific investment strategy. You are fully responsible for your investment decisions. Your choice to engage in a particular investment or investment strategy should be based solely on your own research and evaluation of the risks involved, your financial circumstances, and your investment objectives. Scottrade, Inc. and its affiliates are not offering or providing, and will not offer or provide, any advice, opinion or recommendation of the suitability, value or profitability of any particular investment or investment strategy.

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