Archive | January, 2015

Investing On Auto Pilot

8 Jan

Is it really possible to have automatic investing?

The answer is yes you can with some investments but would you take the risk?

I’m all for an easier life with money flowing in each month while I’m out enjoying life. In reality we all have to put in some considerable effort to start with to get the desired results. Investing offers me the opportunity to create that lifestyle. But only certain investments do.

P2P – Peer to Peer lending is one such investment. Your money is broken down into small blocks of £10 lots. Then added to other investors money to make up loans for borrowers. Each month you receive interest on your investment. Some companies offer automatic reinvesting of interest back into new loans and guaranteed refund of your investment should there be a default on the loan. It’s a win/win situation. You can set up a standing order to add money to your investment then sit back and watch it grow. A great example of investing on auto pilot.

Managed Funds are also a way of auto investing. While I’m not a fan of this type of investing it does suit many investors. However, if there are losses incurred they are passed on to the investor along with hefty management fees.

Property can be a semi auto investment. Once the hard work of buying and refurbishing a property has been done you can use a management company to find tenants and collect rents. You will have to sort out maintenance and compliances.

Share investing is another semi auto investment. You do the hard work of researching which companies to invest in. Buy the shares and wait for the dividends. Some companies will offer shares in lieu of dividend. This way your share portfolio grows automatically. Unfortunately, there are very few companies that offer this service.

So, can you automate investing? Yes, you can but only in very limited investments with varying degrees of risk.

Karen Newton is an entrepreneur, investor, writer and speaker. For more information about Karen visit Continue reading