For some, the idea of investing conjures up images of crazed traders on the floor of an exchange.
Others think of someone in a home, sitting in front of a computer screen, desperately trying to time the exact best time to buy — and then to sell.
These images, and the idea that you have to be on top of all the market movements and news, discourage many from investing.
Not all investing is a short-term attempt to profit, though.
Indeed, many investors are passive investors, doing very little to actively manage their portfolios. Think investing in a tax-advantaged retirement account like a 401(k) or an IRA.
A passive investment doesn’t have to be all about your retirement account, though. Anyone can be a passive investor and come out just fine in the end.
