Bitesize: How you can be lazy and *still* invest

Alec: [00:00:07] Welcome to Bitesize on Get started investing. In this series, we feature some of our favourite lessons, quotes and moments from the podcast. If you'd like to listen to the full episode, we've included the link in the show notes. So today we're talking about auto investing, which is a feature that more and more brokers are adding to their service, their platform. Yep. And I guess that's the news. We're using the news loosely. 

Bryce: [00:00:36] That's the update. 

Alec: [00:00:38] I think we wanted to just spend the next 15 minutes unpacking what it is and then how you can think about using it, because it's a pretty cool feature that is pretty new. And so it's worth explaining and unpacking. 

Bryce: [00:00:53] It's a feature that has really solved one of the final pain points of true dollar cost averaging. 

Alec: [00:01:01] Yes.

Bryce: [00:01:01] So let's get started. 

Alec: [00:01:02] Writing the way we like to. We like to say you can invest without being an investor and because, you know, there's all these connotations about like what an investor is Aaron Williams sleeveless vest talking about stocks are pod he. 

Bryce: [00:01:19] Sounds like me.

Alec: [00:01:23] And you know we're saying like to be an investor you don't have to care about stocks as much like you can set and forget. And this is the ultimate set and forget and get on with your life.

Bryce: [00:01:32] Auto invest. What is it for those that haven't heard of it, haven't logged into their broker and seen it? 

Alec: [00:01:37] Yeah. So in essence, if you think about what I do with the broker, you go in and you buy a stock similar these days, similar to how you buy your online shop and auto invest is really just a recurring buy. So rather than just buying something, once you tell the broker to buy it at a set interval for however long, it's awesome. It's like an automated transfer in your bank. 

Bryce: [00:02:02] Yeah, it is exactly the same as an automated transfer in your bank. 

Alec: [00:02:06] It's just an entry to an instruction trade. 

Bryce: [00:02:08] So it's rent to that account. Yeah. Done. Yeah. And that's what it is. Every two weeks, let's buy $200 worth of this ETF and it'll just keep doing it. Yeah. Until you say otherwise.

Alec: [00:02:19] The important thing that I learn, because I've set this up for my brokerage is they don't direct debit or at least the platform that I use doesn't direct debit. That's fair enough. So you have well, the crypto platform that I use does direct debit. Oh, no, no, no, no. That's not true. 

Bryce: [00:02:37] That's it. 

Alec: [00:02:38] Yeah, but micro investing apps, direct debit. 

Bryce: [00:02:40] Micro investing apps. Direct debit. Yeah. 

Alec: [00:02:43] So it's like anyway there's probably a reason why but you so you so I've set it up so you set up a bank transfer transfer $200 once a month to brokerage and then you tell your broker, invest that $200 in this once a month. 

Bryce: [00:03:00] Yeah. 

Alec: [00:03:01] Yeah. And then you go on with your life. 

Bryce: [00:03:03] It's like a supply chain should get paid. Well, and this is what I mean around the dollar cost averaging, because there's always that pain point of I can get paid, I can have my payment auto transfer to my broker. I can have in my mind's eye that I want to every month buy $200 worth of X, Y and Z. But if I forget or if the market is doing something that kind of scares me and doesn't make me buy, then that final stage of actually making the purpose of purchase wasn't automated. Yeah, but that's why this feature is so good. 

Alec: [00:03:39] So we obviously can't recommend a broker. And the recurring feature is just one feature set that you should look for when making your own decision. Yeah, but to give you the information so you can go and do your own research. More and more Australian brokers are offering it. I know Perla offers it. The super hero offers it.

Bryce: [00:03:59] Just launched. 

Alec: [00:03:59] Sharesies. Sharesies offer it. 

Bryce: [00:04:01] They've been around for a while. 

Alec: [00:04:03] Do any others from memory? 

Bryce: [00:04:04] Not that I'm aware. 

Alec: [00:04:05] Okay. Yeah. And then if you're listing overseas, Robinhood offers a I'm not sure I'm not that familiar in the UK, but I'm pretty confident your online brokers will offer advice. Some of them. Well, no. I think for me it's like, do the research, find the broker that works for you. But this is a pretty this is a feature that really works for me because I am inherently lazy and that automating things is, is just a really good way of just making sure that they happen in all aspects of life. And there are so many options when it comes to auto investing. You know, like I don't have any property exposure, but I could. I don't have any active management exposure, but I could. I don't have any somatic exposure, but I could but I just wanted to start with this. And I've done the minimum amount possible across those five ETFs. Until you give me a pay rise, I'll then be able to add some more. But I'm just like, So my first auto invest went out as we're recording this week. Okay, nice. And so I'm just like dipping my toe in the water, some minimum amount possible, just seeing how it all works. And the great thing is if I decide that there's something about this broker that I don't like, there's at least two others that I can choose from today, and there's going to be more than two in the future. So I think that's my final takeaway. 

Bryce: [00:05:22] So I just want to touch on that. So there is a minimum amount that you can do with the broker. You always. 

Alec: [00:05:27] Well, yeah, like every broker will have a minimum, even if that minimum is $0.01.