In today's fast-paced world, time is a precious commodity, and managing your investments can quickly become a time-consuming and complex task.

Whether you're a seasoned investor or a beginner, automating your investment process can save time, reduce stress, and help you build wealth more efficiently.

The concept of automation in investing isn't new, but with advances in technology and the growing availability of automated tools, it's more accessible than ever before. In this article, we will explore how to automate your investing strategy, discuss the benefits, and provide actionable steps to get started. With insights from industry professionals, you'll understand how automation can streamline your investment process while optimizing your portfolio for long-term growth.

Investment Automation: What Is It and Why Does It Matter?

Investment automation refers to the process of using software or digital platforms to manage your investments without the need for manual intervention. This can range from automated investment accounts like robo-advisors to setting up automatic contributions to your investment accounts. The goal of automation is to eliminate the need for constant monitoring and decision-making, making investing simpler and more consistent.

Sergey Ryzhavin, head of B2COPY and a 15-year veteran in AI trading technology, discussed the evolving landscape of investing: "AI is increasingly being used for market analysis and trade execution, reducing the need for manual intervention by individual investors. Key technologies driving this shift include robo-advisors, AI-powered stock screening tools, and automated trading systems."

Robo-Advisors: The Easy Path to Passive Investing

Robo-advisors have revolutionized the way people approach investing. These digital platforms use algorithms to manage your investments, typically based on your risk tolerance, goals, and time horizon. By setting up an account with a robo-advisor, you can automate portfolio management without needing to pick individual stocks or bonds.

Automated Investment Contributions: Building Wealth Over Time

One of the simplest ways to automate your investments is by setting up automatic contributions to your investment accounts. Whether you're contributing to a retirement fund, a brokerage account, or a savings account, automating regular deposits ensures that you're consistently investing and taking advantage of dollar-cost averaging.

Dollar-cost averaging involves investing a fixed amount of money at regular intervals, regardless of the market's performance. Over time, this strategy can help you avoid buying into the market at peak prices and reduces the impact of short-term market fluctuations on your portfolio.

Automatic Rebalancing: Keeping Your Portfolio Aligned with Your Goals

Another key aspect of investment automation is automatic re-balancing. Over time, your portfolio will naturally shift as some assets grow faster than others. For example, if your stocks perform well, they may constitute a larger portion of your portfolio than you originally intended, leaving your portfolio out of alignment with your risk tolerance. Automatic rebalancing is a feature offered by many robo-advisors and investment platforms.

Tax-Loss Harvesting: Automating Tax Efficiency

Tax-loss harvesting is a strategy used to offset gains in your investment portfolio by selling underperforming assets at a loss. While this strategy can be beneficial, doing it manually requires attention to detail and constant tracking of market movements. Automated tax-loss harvesting tools, however, do this for you.

Setting Up Automated Alerts: Stay on Top of Market Movements

While automating your investing strategy is designed to reduce the need for constant attention, it's still important to stay informed about major market changes or shifts in your investment goals. Setting up automated alerts can help you track your investments without having to monitor the markets daily.

Automation has transformed the way people approach investing, making it easier and more efficient to grow wealth over time. Whether you're using robo-advisors, setting up automatic contributions, or rebalancing your portfolio, automation allows you to remove emotions and inefficiencies from your investment process.