Patricia Stallworth No Comments

Today on MYM360…

It’s Friday and time for our word of the week –the word this week is Passive Investing.

I chose Passive Investing because it’s one of the best ways I know to build wealth without a lot of drama. Passive investing is based on a buy and hold strategy so you won’t get rich quick but if you choose wisely, you can get rich slowly.

Passive investing aims to maximize returns over the long run by keeping the amount of buying and selling to a minimum. The idea is to avoid the fees and the drag on performance that potentially occur from frequent trading. One of the best tools for the job are index funds or ETF’s (electronically traded funds). They make good options for passive investing because you can invest in a basket of stocks or other investments and get some instant diversification, and the cost can be relatively and the fees tend to be much lower than actively managed funds.

While detractors of passive investing believe passive investments can’t beat active investments since they are not tactfully managed to change with market swings or take advantage of potential future events, passive investing’s uniformity, makes it easy for many investors to use the same strategy to succeed.

In many cases, active investors shoot themselves in the foot while attempting to time the market or by selecting ‘hot’ securities because of the simple fact that they cannot predict the future. A passive strategy is to stay in the market to capture its positive returns and eliminate the complex guesswork that usually proves wrong over the long run.

Our word of the week: Passive Investing. Remember, regardless of whether you choose the active or the passive route, all investments require patience and the ability to stick with the plan or you could quickly find yourself with bullet holes in feet caused by shooting own self.

And that’s it for today. If you like us, subscribe to show so you never miss an episode.  You can subscribe to the show and leave us a review by visiting our website at www.mym360.com and clicking on the green box at the top of the page.

Thanks for listening and as always remember that minding your money really is the path to a richer life!