We all lead busy lives, and sometimes it just feels like there aren’t enough hours in the day. Sadly, this might put you off the idea of investing because you don’t have enough time to do research and stuff your stocks and shares ISA full of great investments.
I’m going to explain why being time-poor doesn’t mean you have to be money-poor. I’ll reveal some investing hacks and ways that you can put your money to work without spending all your free time researching investments. Read on to find out exactly how you can become a time-efficient investor.
Too busy to work on your stocks and shares ISA?
Unless you’re really into personal finance and investing, you probably have plenty of activities that take priority during your fleeting moments of free time.
A study of people between the ages of 15 and 64 showed that in the UK, once things like work, sleep, shopping and household chores are taken care of, the average person has around five hours of leisure time each day.
So, if you’re looking to watch some Netflix, work out, or meet up with friends, this doesn’t leave you with a lot of spare time to research and manage your investment portfolio!
What’s the benefit of using a robo-advisor ISA?
If you’re regularly pressed for time, these platforms can help you streamline the whole process of investing.
All you need to do is follow these five simple steps:
- Choose your robo-advisor platform and set up an account.
- Create a stocks and shares ISA on the platform.
- Select your risk and investing preferences.
- Link up your bank account for regular investment.
- Set and forget, and let the platform do its thing.
Once your account is up and running, the clever algorithms will work their magic and keep investing for you regularly, whilst occasionally rebalancing your portfolio so that it stays in tip-top shape.
How do robo-advisor stocks and shares ISAs perform?
This will depend on the profile you select when setting up your account, but here are some examples of recent portfolio performances with a few different stocks and shares ISA accounts:
| Robo-advisor | Profile | 2021 return (after fees) | 3-year annualised return |
| Wealthify | Ambitious | 9.72% | 8.85% |
| Moneyfarm | Risk Level 6 | 13.7% | 11.61% |
| Nutmeg | Portfolio 7 | 12.6% | 11.94% |
| Wealthify | Confident | 6.7% | 8.47% |
| Moneyfarm | Risk Level 5 | 11% | 9.03% |
| Nutmeg | Portfolio 6 | 9.9% | 10.06% |
It can be hard to compare apples to apples because each platform has unique portfolios and different ways they like to label them. But the ones selected above are on the higher end of the risk/reward ratio spectrum.
You should also bear in mind that past performance doesn’t dictate future results. They simply offer an indicator of how the portfolios have performed previously.
How do you start investing with a robo-advisor?
Each platform will have a slightly different process, but it shouldn’t take more than a couple of minutes to create a stocks and shares ISA on a robo-advisor platform.
Along with the platforms listed above, another excellent and affordable option is InvestEngine. The platform offers great value and you’ll also get a cash bonus to help kickstart your portfolio when you sign up using our referral link. There’s also extra cashback on offer for setting up an ISA!
Once you’re up and running, you can enjoy the rest of your free time however you like! Your robo-advisor will just tick along in the background. You just need to remember to set up a regular investment payment. From then on, your robo-advisor will build your wealth tax free, without you having to lift a finger!
It’s important to note that all investing carries risk. These platforms will allow you to select the level of risk you want to take, so make sure you don’t burden yourself with more than you’re comfortable with.
Don’t leave it until the last minute: get your ISA sorted now!
If you’re looking to invest in shares, ETFs or funds, then opening a Stocks and Shares ISA could be a great choice. Shelter up to £20,000 this tax year from the Taxman, there’s no UK income tax or capital gains to pay any potential profits.
Our Motley Fool experts have reviewed and ranked some of the top Stocks and Shares ISAs available, to help you pick.
Investments involve various risks, and you may get back less than you put in. Tax benefits depend on individual circumstances and tax rules, which could change.
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About the author
George is a freelance writer focused on educating others in personal finance, tax, and investing. He’s a qualified Financial Adviser and previously worked within property and insurance in a number of different countries…. Read More
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