Automatic Investing (How It Works + 3 Automatic Investment Plans)

by Anthony Zhang

Ever found investing complicated? 

No need to worry - explore automatic investing.

Let’s see how automatic investing works, if this investment strategy is worth it, and which automatic investment plan might be right for you.

We’ll also check out how you can auto-invest and build a profitable wine investment portfolio with Vinovest!

Further reading

How Does Automatic Investing Work?


An automatic investing plan (or automatic investment plan) allows you to decide how much and how often you want to invest. From there, the recurring investments are made on your behalf.

Simply put, it’s an investment program that allows you to automatically fund your investment account at regular intervals.

An automatic investment plan is often used as part of a dollar cost averaging strategy.

With the dollar cost averaging method, you automatically invest small amounts on a pre-set schedule - whether the stock market is down or up. This method protects you from market volatility - it helps you buy more shares when prices are low, and fewer shares when prices rise.

Depending on your automatic investing plan, automatic withdrawals will be made from your paycheck or bank account (whether you use a savings account or any other account type.) From there, the money will be deposited into your investment account.

However, you can decide to set up automatic withdrawals on your savings account (or any other account type) or contribute through an employer-sponsored investment account. 

Is Automatic Investing a Good Idea?


If you’re serious about building a profitable investment portfolio, then auto investing can be worth it. 

This investment strategy comes with these benefits:

  • Reduces Your Investment Risk: By committing to an automated regular investing plan, you increase the chances of getting the best returns for your investment product. For example, when you auto invest through Vinovest, the platform ensures that you put your money only into profitable wine bottles.
  • Saves You Time: When you auto invest, you won’t waste time setting up transfers to your account or making a direct deposit each month. Yours is to focus on other important things and watch your investment portfolio grow in value.
  • Helps You Navigate Any Market Condition: Auto investing protects you during a declining market period and other economic downturns. Depending on the market conditions, this investment strategy helps you buy more shares when prices drop, or fewer shares when prices are high.
  • Allows You to Budget for Investing: This strategy helps you include regular investing as part of your budget. When your money is automatically deposited into your investment account, you’ll be less tempted to spend it.

So, auto investing can be a good investment decision. However, auto-investing in an individual stock or asset tends to be too risky. 

Let’s explore a few different types of automatic investment plans - for example, diversifying your portfolio with profitable assets like fine wine.

3 Types of Automatic Investment Plans

Here are the different automatic investment plans (AIPs) to check out:

  1. Micro-Investing Platforms (Robo-Advisors)
  2. AIPs for Individuals
  3. Employer-Sponsored AIPs

1. Micro-Investing Platforms (Robo-Advisors)


Robo-advisors are automated investing platforms that manage your investments with minimal human supervision. 

They usually require a low minimum sign-up fee - making it easy for everyone to create an investment portfolio with a small dollar amount.

These platforms usually ask you questions about your investment objectives and then offer advice. From there, they connect with your bank account.

Finally, the investing app or website automatically makes investments for you.

Here’s one of the finest examples: Vinovest

This AI-powered platform allows investors of all skill levels and risk appetites to invest in the world’s finest wines.

Depending on your tier, the Vinovest website or investing app will automatically fund your account daily, weekly, or monthly. 

The Starter and Plus tiers are algorithmically managed - the algorithm picks the finest wines for your portfolio according to your investment criteria. Meanwhile, the Premium and Grand Cru tiers allow you to construct your portfolio the way you want.

Now, here are the steps for auto investing with Vinovest:

  1. Sign up on the Vinovest website or the investment app.
  2. Answer a quick questionnaire to determine your risk appetite and investing style.
  3. Fund your account with a minimum of $1,000.
  4. Set up a recurring deposit so you can add funds to your account daily, weekly, or monthly. The minimum deposit is $500, and you can set up a recurring deposit via credit card or bank transfer.
  5. Sit back and watch your investment portfolio grow.

What are some of the benefits?

  • Vinovest safely stores your wines under perfect conditions in a bonded warehouse.
  • It sources wines directly from winemakers, global wine exchanges, and wine merchants - helping you get your wines at the best possible wholesale prices.
  • It charges you a 2.5% annual fee (1.9% for a portfolio above $50,000) which covers buying your wines, authentication, storage, full insurance, portfolio management, and wine selling.

So, why is it worth putting your money into fine wine instead of any other investment product? 

It’s quite simple - fine wine usually outperforms stocks, mutual fund options, and other investments. For example, it appreciated in value by a whopping 127% over the last 10 years - outperforming blue-chip art, colored diamonds, and other assets.

Now, if things seem a bit complicated for you, reach out to Vinovest’s portfolio advisors to get the best investment advice.

2. AIPs for Individuals


As an individual investor, you can make automated investments using a retirement account or a brokerage account.

You can open these accounts through a bank, an online brokerage, a personal broker, or an investment company. Instead of making a direct deposit to your account every month, the AIP provider will make the recurring investments on your behalf.

If you don’t know what to pick between a retirement account or a brokerage account, it’d be best to reach out to a financial advisor.

3. Employer-Sponsored AIPs


Some employers offer automated investing plans such as 401k. Simply put, the 401k is a retirement account where you regularly contribute your income.

It’s advisable to contribute a certain percentage (about 15%) of your income instead of a flat dollar amount. That way, you might not have to adjust your automatic investment contributions if your salary changes.

Some employers offer an individual retirement account called a Roth IRA. The main benefit of a Roth IRA is that your contributions and earnings will grow tax-free and can be withdrawn tax-free after age 59 and a half. 

Explore Automatic Investing With Vinovest Today!


Whether you’re investing for retirement or to build your wealth, automating your investments can be an excellent idea. If you’re struggling to make an investment decision or reach a financial goal, then you could seek help from a financial advisor.

But if you want to auto invest in an asset like fine wine, a platform like Vinovest is all you need.

This site helps you build a profitable portfolio and meet your investment objectives. It reduces your investment risk by helping you invest in fine wines that usually outperform stocks, mutual fund options, and other assets.

So, check out the Vinovest website or the investment app to buy, store, and sell the finest wine bottles. Vinovest experts will also offer you the best investment advice so you can get the best returns anytime - be it during a declining market period or any other economic downturn.

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