Summary: There are two main types of investing, active and passive. Active investing is typically for people who have a deep understanding of the investments they are working with. They are trying to time the market by buying an investment when it is low, and growing it to the point where it's grown enough to achieve whatever profit goals they set, then selling that product for a profit. The classic buy low sell high strategy. You have to be paying attention to what's going on in the world and be ready for quick movement to avoid losses. There are people who are very good at this but it is highly risky and not for everyone. Passive investment is when you buy something and hold onto it. You pay attention as it grows over the years and you control your overall risk by keeping your investments balanced based on the amount of risk you are willing to accept. A typical passive investment is an exchange traded fund or index fund. Passive investment can be done through robo advisors automatically, they take care of the risk management for a small fee, or you can open a brokerage account and do it yourself. Typically passive investors fall into these two categories: You just want to keep it simple and live your life so you pay a robo advisor half a percent and they take care of everything. You decide you want control over your investments and also want to try to save money on fees and do it all yourself. Usually this type of person enjoys monitoring their investments and taking a hands on role, at least on a semi regular basis. But what if you fall somewhere in the middle? You don't want to spend a lot of time on your investments, but you also want to have full control and try to minimize your fees. Brendan Wood and Brendan Lee Young fall into this category. They wanted to invest their own money but realized there were so many tedious tasks that still had to be done manually through their online brokerage. So they created a tool to automate all the manual stuff. A kind of Swiss army knife for do-it-yourself investors. Both Brendans joined me from the province of New Brunswick to share their personal finance stories and talk about their new portfolio management tool Passiv. Passiv Website: https://getpassiv.com/ 5 Steps to Passive Investing for Retirement: https://getpassiv.com/blog/5-steps-passive-investing-retirement/ NEXT EPISODE If you liked this episode please subscribe to the podcast on Apple Podcasts or wherever you get your podcasts. It would mean a lot to me and it only takes a few seconds. For the show notes and any links from the episode, head over to my website investwisely.ca, and while you're there please feel free to send me a message on my contact page. Thanks so much for listening to this episode of The Personal Finance Show. I'll be back next week with Shannon Lee Simmons, founder of the New School of Finance and author of the new book Worry-Free Money.
