6 Low-Stress Investing Strategies for Busy People: Put Your Money to Work and Your Mind at Ease

In today’s fast-paced world, even the most successful professionals struggle to find time for everything—especially when it comes to managing their finances. With a dizzying array of financial instruments like derivatives, yield curves, P/E ratios, arbitrage, cryptocurrency, commodities, annuities, REITs, and even “spiders” (a nickname for certain ETFs) making headlines, it’s easy to feel overwhelmed. However, building wealth doesn’t require you to become a financial genius or master every piece of jargon thrown your way. Instead, you can set up a simple, lower-stress investing strategy that works with your busy schedule.

As financial advisor Aliya Padamsee, CFA, CFP®, director of financial solutions at Fidelity Investments, wisely notes, “The most important part of investing is not picking individual investments, but having the right asset mix that takes into consideration your time horizon, risk tolerance, and financial situation to help you reach your goals.” With that in mind, here are six practical strategies to help you build wealth without consuming your precious time.

Start with a Strong Savings Foundation

Before you dive headfirst into the world of investing, it’s essential to secure the bedrock of your financial well-being. This means establishing an emergency fund that can cover 3 to 6 months of essential expenses and paying down any high-interest debt. Additionally, if your employer offers a 401(k) match, take full advantage of it—after all, as Padamsee puts it, “It’s like free money.”

This foundational step is crucial. With a safety net in place, you’re not forced to liquidate your investments during unforeseen circumstances, and you set the stage for a steady, long-term wealth-building journey. Once these basics are covered, you can comfortably explore a range of investing strategies without the constant stress of short-term financial emergencies.

1. Embrace Mutual Funds and ETFs

For many busy investors, the thought of sifting through individual stocks and analyzing complex concepts—like yield curves or P/E ratios—can be daunting. Mutual funds and exchange-traded funds (ETFs) offer an excellent solution. These funds bundle a collection of stocks or bonds into one investment vehicle, providing built-in diversification and professional management.

The Benefits:

• Convenience and Diversification: By investing in a mutual fund or an ETF, you’re instantly exposed to a wide range of assets without having to conduct extensive research into each one.
• Professional Management: Actively managed funds, in particular, offer the benefit of expert oversight, meaning that you don’t have to worry about day-to-day market fluctuations.
• Accessibility: ETFs, sometimes affectionately known as “spiders” (a nod to popular ETFs like SPDRs), offer low-cost access to diversified market segments, making them ideal for investors who want exposure to broad market indices without the hassle of individual stock picking.

Considerations:

While mutual funds and ETFs are excellent tools, they often come with fees and potential tax implications if held outside of tax-advantaged accounts such as an IRA or 401(k). Still, for those looking to keep investing simple and stress-free, the benefits far outweigh the drawbacks.

2. Explore Target Date Funds

Target date funds are designed with your future in mind. Whether you’re saving for retirement or planning for a major life event like your child’s college education, these funds offer a one-stop solution. When you choose a target date fund, you simply select one that corresponds to your goal’s timeline—say, a “2040 fund” if you plan to retire in that year.

How They Work:

• Glide Path Allocation: Target date funds automatically adjust their asset allocation over time. In the early years, the fund might hold a higher proportion of riskier investments to maximize growth. As the target date approaches, the fund gradually shifts towards more conservative assets, reducing risk.
• Ease of Use: Once you’ve chosen a fund that aligns with your target date, the management process is largely hands-off. This simplicity makes target date funds an attractive option for those who prefer a “set it and forget it” approach.

Potential Downsides:

The main drawback is the lack of customization. If you have specific financial goals or unique circumstances, the one-size-fits-all approach of target date funds might not perfectly align with your needs. Nevertheless, for many busy investors, the ease and automated nature of these funds make them a solid choice.

3. Let a Robo Advisor Do the Heavy Lifting

In an era where technology is revolutionizing every aspect of our lives, investing is no exception. Robo advisors have emerged as a popular option for investors who want to set up a personalized investment strategy without the time commitment of managing it themselves.

What Are Robo Advisors?

• Automated Investment Platforms: Robo advisors use algorithms to create and manage a diversified portfolio based on your financial goals, risk tolerance, and timeline.
• Hybrid Options: For those who prefer a personal touch, many platforms now offer hybrid robo advisors that combine the efficiency of automation with periodic consultations from financial professionals.

Example in Practice:

Fidelity’s robo advisor, Fidelity Go®, offers a compelling option. With no advisory fee for balances under $25,000 and a competitive fee structure beyond that, Fidelity Go® delivers a seamless investment experience that includes unlimited one-on-one coaching calls. This approach not only takes the guesswork out of asset allocation but also ensures that you’re on track to meet your financial goals—without needing to understand the intricacies of arbitrage strategies or the latest trends in cryptocurrency.

4. Invest in a Model Portfolio

For investors who want a bit more involvement but still appreciate expert guidance, model portfolios provide a middle ground. These portfolios are pre-built by financial professionals and are tailored to meet various investor profiles based on risk tolerance, financial goals, and sometimes even personal values.

Why Model Portfolios Work:

• Pre-Determined Allocation: With model portfolios, you benefit from the expertise of financial professionals who have already done the heavy lifting. The asset classes and allocation percentages are determined to optimize growth while mitigating risk.
• Flexibility: Whether you’re passionate about sustainability or simply prefer a conservative approach, there’s likely a model portfolio that matches your needs.
• Periodic Rebalancing: Although you are responsible for purchasing the securities and occasionally rebalancing your portfolio, the overall strategy is streamlined and based on solid, research-backed principles.

By opting for a model portfolio, you’re able to enjoy a tailored investment strategy without having to spend hours poring over market data, whether it’s deciphering the latest commodity trends or trying to understand complex derivatives.

5. Consider a Managed Account

If you’re looking for a truly hands-off approach, a managed account might be the ideal choice. With a managed account, a dedicated financial professional takes charge of your portfolio, offering personalized guidance that aligns with your broader financial picture—including retirement, taxes, estate planning, and insurance.

Advantages:

• Personalized Management: Managed accounts are tailored to your individual circumstances, providing a holistic view of your financial situation.
• Expert Oversight: Working directly with a financial advisor can offer peace of mind. As Aliya Padamsee advises, “Managed accounts often make sense when you want the experts to manage your money for you in accordance with your goals.”
• Comprehensive Planning: Beyond just managing investments, a financial advisor can help you navigate complex financial decisions that might involve diverse instruments—from annuities to REITs, or even a cautious exposure to cryptocurrencies—ensuring your portfolio is balanced and aligned with your long-term objectives.

Considerations:

Managed accounts typically require meeting certain investment minimums and involve fees based on a percentage of your assets. However, if you value professional advice and a hands-off approach, the investment may well be worth it.

6. Automate Your Contributions

One of the simplest yet most effective strategies for busy investors is automation. By setting up automatic transfers from your paycheck or bank account to your investment accounts, you eliminate the need to constantly monitor the markets or remember to make contributions.

The Benefits of Automation:

• Consistency: Regular, automated contributions ensure that you are steadily building your investment portfolio, regardless of market conditions.
• Dollar-Cost Averaging: By investing a fixed amount at regular intervals, you take advantage of dollar-cost averaging, which can help mitigate the effects of market volatility. This approach is especially beneficial if you’re hesitant about making lump-sum investments during uncertain times.
• Reduced Emotional Decision-Making: Automation helps you avoid the temptation to time the market based on short-term fluctuations—a strategy that often leads to emotional, rather than rational, decisions.
• Incremental Increases: Many employers now offer automatic percentage increases in your 401(k) contributions each year. For example, if you’re currently contributing 7% of your pay, you could schedule a 1% increase annually until you reach the maximum allowed. Even a small annual increase can significantly boost your retirement savings over time.

By automating your investments, you free up mental energy for other important aspects of your life while ensuring that your money is consistently working for you.

A Note on Complexity vs. Simplicity

It’s easy to get caught up in the excitement of complex financial instruments and strategies. You might hear buzzwords like derivatives, yield curves, and arbitrage strategies that promise high returns. Similarly, trending assets like cryptocurrencies and commodities often capture headlines. While these instruments have their place in the broader financial landscape, they aren’t essential for everyone—especially if you lead a busy life.

For most investors, focusing on simpler, well-rounded strategies such as mutual funds, target date funds, robo advisors, model portfolios, managed accounts, and automated contributions is not only more practical but also less stressful. This approach allows you to sidestep the need to deeply understand every facet of financial theory—from intricate P/E ratio analyses to the technicalities of REITs—and instead concentrate on building a diversified portfolio that aligns with your long-term goals.

Conclusion

Building wealth doesn’t have to be a time-consuming, overly complex process. By establishing a strong savings foundation and choosing lower-stress investing strategies, even the busiest individuals can make significant strides toward financial security. Whether you prefer the simplicity of mutual funds and ETFs, the automatic adjustments of target date funds, or the cutting-edge technology behind robo advisors, there’s an option tailored to your lifestyle.

Model portfolios and managed accounts offer a blend of expert guidance and personalized management, ensuring that your investments remain aligned with your overall financial picture. And by automating your contributions, you guarantee consistent progress without the daily hassle of market monitoring.

In the end, it’s about putting your money to work in a way that complements your life—not complicates it. Embrace these six strategies to build wealth, and let your investments work quietly in the background while you focus on what truly matters. After all, achieving financial peace of mind doesn’t require mastery of every financial term under the sun; it simply requires a well-constructed plan, regular contributions, and the willingness to take advantage of the tools available to you.

Now is the perfect time to review your financial foundation, explore these strategies, and start building a portfolio that reflects your goals, risk tolerance, and busy lifestyle. Your future self will thank you for taking these simple, strategic steps toward lasting financial security.