Passive Investing Convert

I apologize for the lack of inspiring posts lately but I have a good reason for this behavior – I haven’t been thinking about investing much because I moved a chunk of my net worth into passive funds.  Instead of being very in-tuned with the stock market, I was beginning to be a passive investing convert.

For years, I’ve been buying stocks and while the investments were profitable, it was flat out stressful.  I didn’t know how much it was consuming me but seeing my net worth jump 3%-5% daily was nerve racking to say the least.

It didn’t start out that way though.  At the very beginning, I was excited to see that I could make money in a hurry.  Some days, it was awesome, but other days, it just plain sucked.  I realized that in order for stock trading to be profitable, I really had to stay on top of the investments.  It didn’t give me freedom.  It was another job and a very demanding one at that.

As I get ready to buy my house in a year or so, I moved much of my assets into online savings accounts and then it dawned on me to start trying passive investing.  With half of my assets virtually safe and another big portion in index funds, volatility went way down and  I started noticing that I was happier.  That when the market was in flux, it didn’t bother me anymore.  In a way, I felt like I was living again.  I could play golf without checking on stock prices using my phone.  I could have lunch without searching for places that showed CNBC.

Sure, I will still buy and sell stocks in the future, but most of my assets will definitely be in passive funds because even if I can beat the market, it wasn’t worth the time, energy and stress.

If you haven’t tried passive investing, perhaps you should give it a shot.

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{ 2 comments… read them below or add one }

ObliviousInvestor June 22, 2009 at 7:07 am

Easy to do, low stress, hard to beat…what’s not to love? :)

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Investing School June 22, 2009 at 9:03 pm

Nope. Passive investing is really great :)

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