The dream of passive investing is to build a portfolio so that you no longer have to do anything active to get a steady return. But it takes some work to make it come true, especially now when interest rates are low and markets are volatile.
The goal is to find the kind of stable assets that will eventually do all the work of earning money for you. When you have investments that do this without doing anything “extra,” the income is known as passive.
Assets in a passive investment portfolio might include real estate (real property or real estate investment trusts), P2P (person-to-person private market) loan, dividend-paying stocks, bonds, or even interest in a business. Read More…
All in all passive investing is still the way to go.
When i did my research i found that when they had a literal room of monkeys just randomly smack at the Wall St Journal and picked stocks vs managed funds of supposed professionals the monkeys came ahead at the end of the year.
This tells me that no one is the wiser. It’s all one giant random walk.
Real estate investing is not what i consider a good thing especially after the 2008 fiasco.
Say what you will but people will always be too lazy to want to manage their investments. 🙁 This is why we have Mutual Funds.
Investing for the long term is always the key thing. Most people don’t do that.
I remember the time when interest rates were pushing past 4% in savings accounts. In those days most Canadians could make a pretty penny without much thinking. I miss it!
I just learned about the P2P private loan market from this thing. Interesting.
My spouse and I started a business several years ago and it took a lot of sweat and tears to get into the black (make profit). We are doing well now but it could be better but being passive would be death in my area since we have high competition (restaurant).
I don’t agree with this article. Studies prove that if you buy and hold for the long term against the Index you will always end up on top.
And as bonus it keeps up with inflation.
Don’t buy into the hype that passive investing doesnt work. It does!
There are many quality portfolios that one can look to if you are really not into managing it yourself. But the types you choose reflect the retusn you will get.
So if you put more effort into managing you can expect higher returns. It’s all logical.