When it comes to managing money, I’ve always been someone who likes to stay involved. Budget tracking? Absolutely. Researching where every dollar is going? Yes, please. But when it came to investing, I kept hearing about how “set it and forget it” strategies were the way to go. Automated investing promised simplicity, low-maintenance wealth building, and no more agonizing over stock picks. Could it really be that easy? I decided to find out.

Here’s my story of trying the “set it and forget it” approach, what I learned along the way, and whether it’s worth considering.

Dipping My Toes into Automated Investing

Before jumping in, I did a little research. Turns out, “set it and forget it” investing typically revolves around two main methods:

  1. Robo-Advisors: These platforms use algorithms to build and manage diversified portfolios based on your goals and risk tolerance. Popular options include Betterment and Wealthfront.
  2. Index Funds & ETFs: These are funds that track the performance of an entire market, like the S&P 500, instead of relying on individual stock-picking.

I decided to try both methods. I opened a robo-advisor account with a small chunk of savings and invested in a couple of low-cost index funds through my brokerage account. Then, I set up automatic monthly contributions and did... nothing. That was the whole point, right?

The Emotional Rollercoaster of Doing Nothing

At first, the simplicity felt amazing. I loved the idea that my money was working for me in the background without needing constant supervision. But as someone used to being hands-on, the emotional side of not doing anything came in waves.

The Urge to Intervene

  • When the market dropped a few weeks after I started, I panicked. My instinct screamed at me to pull back or shift things around. But I reminded myself that these dips were normal and that the whole point of this strategy was to weather the ups and downs without reacting emotionally. Spoiler alert: this was harder than it sounded.

Patience is a Virtue

  • One thing no one talks about is how unexciting automated investing feels in the moment. There are no adrenaline-fueled stock picks or “wins” to celebrate. It’s steady, almost boring—but I learned that’s actually one of its superpowers.

The Pros of ‘Set It and Forget It’

After about a year of following this strategy, I started seeing the bigger picture and appreciating the benefits.

1. It’s Effortless

The biggest advantage is how hands-off it is. I didn’t have to spend my evenings researching stocks or staying glued to market news. The robo-advisor rebalanced my portfolio automatically, and my index fund investments didn’t require any adjustment.

2. Diversification Made Easy

The robo-advisor gave me a balanced mix of assets, including stocks, bonds, and international investments, tailored to my risk tolerance. I couldn’t have built a portfolio like that on my own without hours of research.

3. Consistency Pays Off

Thanks to automatic contributions each month, I was investing regularly without overthinking. This helped me take advantage of dollar-cost averaging, spreading out my investments to reduce risk over time.

4. Lower Fees

Both index funds and robo-advisors come with incredibly low fees compared to actively managed funds or hiring a financial advisor. Over the long term, those savings can make a big impact.

The Trade-Offs to Consider

Of course, there were some downsides too.

1. You Sacrifice Control

One of the hardest things was giving up control. With a robo-advisor, you’re trusting an algorithm to manage your money. If you’re someone who likes to tinker, this hands-off approach might feel stifling.

2. Boring Doesn’t Feel Rewarding

Honestly, watching my portfolio grow at a slow, steady pace didn’t give me the same thrill as speculating on individual stocks might have. But I had to remind myself that boredom isn’t a bad thing when it comes to investing.

3. Not Suitable for Every Goal

This strategy works best for long-term goals, like retirement or building wealth over decades. If you need access to your money in the short term, this probably isn’t the right fit.

What Happened After a Year?

Now, the real question: did it work? Yes! My portfolio grew steadily over 12 months, despite a couple of rocky market periods. While the gains weren’t jaw-dropping, they were consistent. Plus, knowing I had a plan in place gave me a surprising sense of peace. No more stressing over market fluctuations or trying to time the perfect moment to buy or sell.

My Advice for Anyone Considering It

If you’re tempted to try “set it and forget it” investing, here are some tips based on what I learned:

Start Small

  • If you’re nervous, begin with a small amount and grow your contributions as you get comfortable. Many robo-advisors have low minimums, making it easy to start.

Do Your Research

  • Look for reputable platforms or funds with low fees. Fidelity and Vanguard offer excellent index fund options, while robo-advisors like Betterment are beginner-friendly.

Don’t Overreact to the Market

  • Trust me, the hardest part is resisting the urge to tinker when markets dip—but staying the course is key to this strategy working.

Think Long-Term

  • This approach isn’t about overnight riches; it’s about building wealth gradually. Be prepared to stick with it for years to truly see the payoff.

Mix It Up If You Need To

  • If you’re not ready to give up control entirely, consider combining this strategy with some active investing. That way, you can scratch the itch to trade while keeping the bulk of your money on autopilot.