What are Passive Investments?

These are investments that can be selected and managed with a relatively small amount of time or effort involved, and in particular, while you are simultaneously working in a full-time job and/or running your own business during the week (especially one not involved in real estate, finance, investment, accounting or similarly related fields, giving you no specialised knowledge, expertise or advantage in investing).

Any investment that requires you to be glued to a computer screen, or require your attention for several hours a day everyday, is a more “active” investment, and one probably better classified as another job or business – ie. not a passive investment.

Many people lose sight of this when deciding on the type of investments they should focus on.

Once bought, passive investments should ideally generate an income for you with relatively little ongoing time or effort involved.

Passive investments should ideally allow you to “set and forget” them and go off on holidays for months on end, and return and still have them continuing to provide you with a regular, reliable and predictable income stream.

In our view, most people are better off focusing on their job and/or business during weekdays and business hours, and finding some spare time outside of this (and it should not require that much time) to allocate towards passive investing.

Rather than trying to hold down a full-time job and/or manage a demanding business, as well as a family, kids, friendships… and at the same time, spending several hours a day “day trading” or actively managing a large property development or renovation, or other active investments.

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1 Comment

  1. David - January 22, 2024, 1:49 AM Reply

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