This is a YouTube video titled "The Passive Investing Lie That's Costing You Money" containing a monologue or talk about the misconceptions of passive investing, emphasizing the importance of actively managing and rebalancing one's investment portfolio. The speaker discusses how ignoring portfolio adjustments can lead to unintended risk exposure over time. The content was created in July 2025.
Passive investing means you never touch your portfolio. Oh, gosh. All right. I have a gripe about the term passive. Passive insinuates just automate and ignore your investments forever. You have a relationship with your money. You have a relationship with your wealth. If you choose, just like any other relationship, to be passive about it, it's going to wither and die. Say you started with this 60% stocks and 40% bonds. After three years of a strong market, the portfolio might be 80% stocks and 20% bonds. 80. I now have a portfolio that is more risky than my profile suggests I should be. One of the things that we do every single year is we do a rebalancing of our portfolio. We cannot sleep at the wheel and just think it's going to take care of itself. Just understand that it's not a set it and forget it type of situation.
