Active vs. Passive Investing: Costs and How to Choose

Active investing means a portfolio manager is making deliberate buy, hold, and sell decisions on your behalf. Passive investing means buying a collection of securities and holding them with little human intervention. In this episode, Ryan explains how these two approaches differ, why active management carries additional costs that must be overcome to deliver better returns, and how most ETFs are passive while most mutual funds are actively managed.Ryan shares that roughly 95 percent of assets at Alchemy Wealth are currently invested passively, not because passive is always better, but because it is lower cost and fits his clients well right now. Aaron and Ryan walk through how to think about which approach makes sense for your own situation.Find "Your Fiscal Physical" the book on AmazonIf you have suggestions or feedback, please email us at: [email protected], as always, Stay the Course!