This week’s Finance Flash Go! episode recap is all about active versus passive stock investing. If you understand the answer to this episode’s question and can put it into action, you will be well on your way to financial well-being!
As I introduced last week, the Finance Flash Go! podcast is a new project of mine
It is a question and answer style podcast show for financial beginners and experts alike. New episodes will air every weekday. Each 5-10 minute episode does a deep dive on an important finance topic that will help YOU grow your financial well-being. Listen to a month’s worth of episodes and you’ll be shocked at how much you learn!
Active versus Passive Stock Investing: Episode Recap
This episode’s highlights include the following pearls:
- Actively managed accounts underperform passively managed funds 80% of the time
- My stock portfolio is comprised of passively managed index funds that are designed to approximate the market average, not chase waterfalls
- Fees in actively managed funds are going to kill you; the more active the stock investment portfolio, the more fees
- Over an investor’s career, fees for actively managed portfolios can equal to hundreds of thousands of dollars
- If you are looking for a winning financial formula, take 20% of your income as savings and invest it passively in broadly diversified, low cost index funds
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What financial topics would you like to hear about in the Finance Flash Go! podcast? Let us know in the comments below!