Automating Investment for Passive Income

Is A.I. the inevitable way of the future?

Things can get hectic when one is a parent with a full-time job, a baby to care for, bills to consolidate and pay, chores around the house to do etc. You get the idea. Parents can get busy very fast but apart from these responsibilities, one has to make sure that you have sufficient funds for your child’s education and your own retirement. 

Enter Robo-Advisors. Robo-advisories are digital platforms that provide automated, algorithm-driven financial advisory and investment services with moderate to minimal human intervention. What this means is it takes a load off your shoulders in terms of seeking out investment opportunities and focus on things that matter to you as a parent. I’m sure you won’t want to miss any of the milestones/achievements of your little ones. 

Of course, all this comes at a price. Management fees that robo-advisories command tend to hover between 0.2% - 1% of either the sum invested or your current portfolio size. 

Time is a priceless commodity that can be burnt so quickly.

More importantly, this allows us to save on a precious commodity that is priceless: Time. Setting aside a fixed sum for investment every month allows one to build up a sizable portfolio over time. Investing this way also allows you to Dollar Cost Average (DCA).  This means that you are purchasing a target asset/stock in periodic intervals which may reduce the impact of volatility on the overall purchase. “Time in the market is better than timing the market”. This is a simple yet important quote that resonates well with me. Over time, your portfolio will likely ride out any blips in the market.

After reading this short post on robo-advisories, if you are interested to find out more about the robo-advisory I currently use, you may check it out here. This is just a small gesture of thanks and a win-win for both of us as we both get up to $10,000 SGD of funds deposited managed for free for a period of 6 months. 

Share with me your thoughts and comments on automated investing and Robo-Advisories!

SG FI Dad, out.