By: Redeemed Finance
I always like to do a little bit of both (active vs passive). Keep the index funds in the ROTH IRA/401k and have some dividend stocks in the taxable brokerage. I'd agree that the way to go for the absolute long term is finding the lowest expense ratio funds you could find and 'set-it and forget'.
Rich
By: Kyle
I keep my active investing for my small business endeavors I work on, not the stock market.
I've been a passive investor but I've been trying to get a more concrete understanding of why you want a bond/stock ETF mix if you're not touching the account for decades. Most research just comes up with "it helps stabilize your investments" but isn't that only relevant if you're touching the money within the next 10 years? I've also heard an idea about when you re-balance the mix you are essentially buying low and sell high over time.
Any Thoughts?
By: Jon Dulin
In reply to <a href="https://compoundingpennies.com/active-vs-passive-investing/#comment-151">Jeanne</a>.
When I first began investing, I bought into the active management style myself. I think most of us do since it's so glamorous to think we can earn a higher return. Sadly, it rarely turns out that way.
By: admin
In reply to <a href="https://compoundingpennies.com/active-vs-passive-investing/#comment-548">Kyle Gisborne</a>.
It sounds like you know what you are doing.
By: Kyle Gisborne
I like passive investing because active management can’t beat passive consistently anyway. Most of my mutual funds and ETFs are passive index. My dividend portfolio are comprised of individual stocks and I’m mostly inactive there as well.
By: MoneySmartGuides
Love it!!
By: MoneySmartGuides
In reply to <a href="https://compoundingpennies.com/active-vs-passive-investing/#comment-200">Nick</a>.
My time is worth much more than $5!
I too have an account with play money. I still don't devote much time to it and am OK with losing all of it. Luckily though that hasn't happened yet!
By: Money Infant
Simple index ETF's FTW. Matches the index they are tied to, ultra low expenses and no need to worry about a trader blowing up the account.