The Ultimate Guide to Automated Investing: Set Your Portfolio on Autopilot

Automated investing is revolutionizing wealth management for busy professionals. Auto investments powered by AI and seamless technology make it possible for investors and brokers to save time, reduce manual errors, and focus on what really matters their careers and families not endless account management and market timing.​

Key Takeaways: Why You Need Auto-Investing Now

The most critical benefits of automatic investing for demanding schedules:

1. Removes emotional bias from trading decisions AI-driven systems stick to strategy, preventing panic selling and greed-driven missteps.​
2. Enables dollar-cost averaging and consistent portfolio growth automatic investing ensures buy-in at regular intervals regardless of market ups and downs for better long-term returns.​
3. Robo-advisors offer the simplest, professional-grade auto investing solution modern platforms like ETNA’s Roboadvisor make automated portfolio management accessible with lower fees and rapid onboarding for joint accounts.​​

What is Auto-Investing and How Does it Work?

Auto investing means using technology, algorithms, and automation to manage deposits, trades, portfolio balancing, and tax optimization without manual effort. It replaces unpredictable, hands-on investing with a systematic, algorithmic approach.​

• Definition: Automatic investing platforms set a portfolio on autopilot by scheduling regular investments, monitoring accounts, and rebalancing as needed.​
• Dollar-Cost Averaging (DCA): Investing a fixed amount periodically regardless of market price results in buying more when prices are low and less when high, resulting in a lower average cost over time.​

6 Proven Ways to Automate Your Investments

1. Contribute to Your Workplace Retirement Account (401k/403b)

Payroll deduction is the original auto investment method for employed professionals.

• Choose a percentage of each paycheck to go directly to a 401(k)/403(b).
• Investment options are selected at enrollment.
• Contributions and any employer match happen automatically no manual transfers required.​

2. Set Up Direct Deposits to an IRA (Roth or Traditional)

Individual Retirement Accounts combine automation with flexibility.

• Automatic monthly or bi-weekly transfers set investing as a priority, not an afterthought.​
• Annual contribution limits apply $7,000 ($8,000 if 50+) for 2024.
• The “Pay Yourself First” principle reduces temptation to spend.

Case Study:
Sarah schedules $250 direct debit into her Roth IRA each month. Over 30 years, at 7% returns, her $90K in contributions compounding automatically grows to $284K, tax-free.

3. Utilizing a Robo-Advisor (The Easiest Route)

Robo-advisors like ETNA’s Roboadvisor offer professional-grade auto investments built on AI and research.​​

Features include:

• Automated portfolio allocation/rebalancing
• Tax-loss harvesting for enhanced after-tax return
• Rapid, digital onboarding (including joint accounts)
• Low management fees versus traditional advisors

4. Automatic Transfers to a Taxable Brokerage Account

Taxable brokerages support recurring auto investments and joint accounts for more flexibility.​

• Link checking account, set weekly/monthly transfers.
• Configure auto-purchase of ETF, mutual fund, or fractional shares.
• Ideal for couples and goal-based investing outside retirement vehicles.

5. Use a Micro-Investing App (Rounding Up)

Micro-investing apps automate wealth building by investing spare change.

• Connect debit/credit cards apps round up transactions and invest the difference.
• Most require just $5 to begin and offer fractional shares.

Popular Micro-Investing Apps:

• Acorns: ETF round-ups, retirement and custodial accounts
• Stash: Fractional shares, banking integration, education tools
• Robinhood: Recurring stock/crypto auto-invest options

6. Working with a Financial Advisor (Hands-Off Approach)

Financial advisors increasingly offer automated investment management for high-net-worth clients using hybrid platforms.​

• Combines human oversight, algorithmic rebalancing, and proactive strategic advice.
• ETNA enables advisors to offer white-label, automated digital onboarding and compliance saving time for both advisors and clients.​

The Benefits of Consistent Investing

Avoid Emotional Investing

• Market timing fails for most fear and greed cause buying highs, selling lows.​
• Automated investing follows strategy regardless of panic or hype.
• Studies find investors switching to robo-advisors see less volatility and higher risk-adjusted returns.​

Pay Yourself First

Treat investing like a bill automated transfers before any discretionary spending prevent putting off saving.

• Behavioral finance shows that automating deposits overcomes “present bias” the tendency to favor immediate rewards.​
• Setting investments day after payday guarantees long-term discipline.

Take Advantage of Dollar-Cost Averaging (DCA)

• DCA lowers your average cost per share during volatile markets.
• By investing a fixed amount monthly or bi-weekly, you accumulate more shares when prices drop and fewer when they spike.
• Ideal for professionals earning steady paychecks: automation turns paydays into incremental wealth.​

Step-by-Step Guide: Creating Your Automated Plan

Step 1: Determine Your Investment Goals (Timeline and Risk)

• Define goals: Retirement, home, education
• Decide timing: 2, 5, 30 years?
• Assess risk comfort: Larger equity allocations mean more risk/reward

Age-based allocation guidelines:

• Ages 25-35: 80-90% stocks
• Ages 36-55: 60-70% stocks
• Ages 55+: 40-50% stocks

Step 2: Choose Your Platform and Allocation

• Weigh single versus mixed platforms (401k, IRA, Robo-advisor, Taxable)
• Robo-advisors like ETNA offer seamless, all-in-one solutions.

Step 3: Set up Recurring Deposits (Frequency & Amount)

• Pick frequency: Monthly, bi-weekly, or weekly, all work align with pay schedule for consistency.​
• Set the day after payday for the deposit.
• Even starting at $50-$100/month builds discipline and compounds over time.

Setting or Adjusting Minimum Cash Balance

Some robo-advisors (ETNA, M1 Finance) let users maintain a minimum cash reserve before investing the remainder.

• Minimum cash balance ensures funds for emergencies/opportunities.
• Adjust as needed for liquidity or maximizing invested capital.
• Best practice: keep a reserve at 2-5% for rebalancing and expenses, higher if short-term liquidity is required.​

The Bottom Line: Don’t Delay Your Auto-Pilot Plan

Automated investing democratizes access to sophisticated wealth management for busy professionals and their advisors.

Action Steps:

• Choose one automation method start simple, expand with experience.
• Set up auto deposits; even $50 monthly builds habits.
• Review allocations annually and increase contributions with raises.

Platforms like ETNA’s Roboadvisor empower broker-dealers and wealth managers to serve demanding clients efficiently while reducing overhead and enhancing compliance. Take action now: set your portfolio on autopilot and let technology build wealth while you focus on life’s other priorities.​