How to Grow Wealth with Passive Investing
00:00:00.000 | As for how to invest the money
00:00:01.400 | in your taxable brokerage account,
00:00:02.960 | I don't think it has to be fancy.
00:00:04.600 | You can build really serious wealth
00:00:06.600 | by just investing passively in low-cost index funds or ETFs.
00:00:10.820 | I'm not trying to beat the market.
00:00:12.420 | I'm not trying to time the market.
00:00:13.960 | The majority of my money is in index funds
00:00:17.240 | just trying to match the market performance.
00:00:19.160 | I do personally like to be diversified
00:00:21.740 | across sectors and geographies.
00:00:23.520 | So some of those are international.
00:00:25.920 | Some of those are US-based.
00:00:27.840 | But I do have a bit of diversification
00:00:29.740 | in a couple different index funds.
00:00:31.640 | I also like to align the portfolio I have
00:00:33.920 | and I would recommend everyone think about
00:00:35.460 | their own level of risk tolerance
00:00:36.900 | and how much they're willing to stomach a drop
00:00:39.780 | if the market changes
00:00:40.760 | because that's an important thing
00:00:41.940 | that if you haven't experienced it before,
00:00:43.940 | it can be a little bit tough to experience.
00:00:46.280 | And then I would just really avoid
00:00:47.740 | over-trading, unnecessary complexity.
00:00:49.620 | I don't like to spend a lot of time
00:00:51.620 | in my brokerage account thinking about it at all.
00:00:53.560 | In fact, most of mine is automated
00:00:55.800 | and it's not something I check on a daily basis.