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November 2011

Monday, November 21, 2011

Carnival of Passive Investing #11 - October 2011 Edition at Barbara Friedberg Personal Finance With Passive Investing Author, Jerry Tweddell

The 11th (October) edition of the Carnival of Passive Investing is now live on Barbara Friedberg Personal Finance at the link below. I apologize in advance for any confusion the delay in the October edition has caused, as we had to push back publishing the October edition on Barb's site until November 10th in order to accommodate everyone's schedules. 

It was an honor for us to have passive investing author, Jerry Tweddell, helping to pick this month's top articles, as his book, Winning with Index Mutual Funds, was one of the books that I have leveraged over the years to design my passive investing strategy. 

Carnival of Passive Investing # 11 - October 2011


Thanks to everyone for participating. Congrats to this month's top 3 picks (shown below)!

1. Glen Craig presents, What is DRIP Investing and How Can it Grow Your Wealth?, posted at Free From Broke.We often hear how dividends can grow your wealth. One way this is done is through a dividend reinvestment plan (DRIP). But, what is a DRIP, and how exactly can it grow your wealth? If you are new to investing, this is a great way to get started.
2. Suba presents, This little piggy wants to retire, posted at Wealth Informatics. A very clever investing tale, inspired by an old story.
3. The Wealthy Canadian presents, Becoming An Index Investor: The Strategy, posted at The Wealthy Canadian. This article discusses incorporating index funds and ETFs as part of one’s overall investment strategy. This post is part 1 of 3.

What is Passive Investing?


Each month, there seems to continue to be quite a bit of confusion about what constitutes passive investing and what DOES NOT (i.e. - which posts will be included in the carnival or screened out). There's really nothing wrong with this confusion, as indeed, one of the original goals of this Carnival was to help spread the word about this specific niche of investing styles. As such, we want to make sure that everyone knows what passive investing is in order to keep the articles published in the editions of The Carnival of Passive Investing focused. 


Overall, passive investing involves the use of passively managed (not actively managed - so avoiding individual stock buying/selling) investing instruments, such as index ETFs or mutual funds, in order to invest with the market. By using this method and avoiding individual stock selection, we are able to beat 70% of more of the investing "professionals" out there.


Examples of passive investing include asset allocation, index investing, ETFs, portfolio rebalancing due to market fluctuations, asset class evaluation, controlling investor emotions, strategies for adding new funds to your investment portfolio (dollar cost/value averaging), etc. Passive investing does NOT include INDIVIDUAL STOCK PICKING (even if they are dividend stocks), CREATING PASSIVE INCOME, OR MARKET TIMING. A definition of passive investing can be found here.

Looking Ahead to Next Month's Edition


Thanks to our participants and host, Barb! Fellow Yakezie blogger, John Border, from Stock Market Basics will be our host of the next (November - # 12) edition, scheduled for November 30th, 2011. This will be just in time to wake us up from the post-Thanksgiving turkey comatose state! Be sure to get your articles in now (see instructions below)!

Since Blog Carnival has ONCE AGAIN started to not work at all recently (most everyone that I know has had technical difficulties), you can use the Blog Carnival Workaround submission form that Canadian Finance Blog developed by clicking here. Just remember to scroll down the drop-down menu until you see "The Carnival of Passive Investing" before clicking, "submit."

Also, I am now beginning to put together the hosting schedule for 2012 since the 2011 is coming to a close. Currently, all months minus January and March (this carnival is only monthly) are open, so if you'd be interested in hosting, take a look at the hosting schedule and then send me an email to get on the schedule.