Robo Investing is a simple, fuss-free and lazy way of investing. Investing into the stock market is one of the more common way of building wealth for the long term.
STRATEGY
- $10 is automatically giro-ed into my Smartly portfolio on the 8th June every month.
- Another $10 is added every time there is a significant drop in the market.
INSIDE MY SMARTLY PORTFOLIO
There is no changes in the holdings and allocation for this month. 83% is in stocks, 16% is in bonds, 1% is in cash.
This is a portfolio itself, consisting of stocks, bonds and cash. There is no additional transaction or rebalancing fee. There is only a 1% annual management fee.
The return is about 1.7% since May 2019.
FINAL THOUGHTS
The return can be considered very low, but definitely higher than just leaving money in the bank. The US market is at all time high now but it was not too far off from when I started in May, hence the low 1.7% return.
In order for this method to generate higher returns, the market has to drop significantly in order for the “Dollar Cost Averaging” to buy the stocks at a lower price. But we can never know when the market will drop. It would be better to stay invested if one chooses to adopt the Robo Investing method.
Please take note: Robo Investing is not suitable for people who wants to earn quick money.
Disclaimer: www.engboonhow.com is an opinion based website. I am not a financial advisor, and the opinions on this site should not be considered as financial advice. This is not a sponsored post. You can contact me for a referral code to invest via Smartly if you like to.