Step-by-Step Guide to Passive Investing

Click here for Forms and Exercises (These exhibits appear in the book)

If you've decided that passive investing is the correct strategy for your long-term investing goals, this section will take you through a step-by-step process for executing such a strategy.

Your first important decision is whether to use the services of a financial advisor. The alternative is to manage the entire process yourself.

1. Allocate Assets - decide how much of total wealth to invest in each asset class
2. Select Funds - select specific funds to match asset allocation
3. Simulate Trading - get some practice using free trading simulation software
4. Open Trading Account - find discount broker and sign up for a trading account
5. Buy Funds - purchase your selected funds using your new brokerage account
6. Monitor and Rebalance - periodically buy and sell some of your fund units to restore targeted asset allocation

The Passive Investing Steps menu on the left side of this screen will assist you in navigating through these steps.

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