Active vs. passive investing
Should I pick investments myself or just buy and hold?
2 minute read
Active means you do the work. Picking stocks, flipping houses, managing rentals. More control, more time, more ways to make mistakes.
Passive means the money works without much of your time. Index funds, protected products, or a property run by a manager.
Most people do best with a passive core and a small active part they actually enjoy and understand.
Why this matters
Active investing only pays if you have the time and skill. Otherwise it is a second job with risk.
What to do with this
- Be honest about how many hours a week you have.
- Put most long-term money in something passive.
- Keep any active bets small until you have a track record.
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