Carnival of Passive Investing #14 - January 2012 Edition Now Live at Afford Anything with Passive Investing Author, Mark Hebner

Saturday, February 4, 2012

Carnival of Passive Investing #14 - January 2012 Edition Now Live at Afford Anything with Passive Investing Author, Mark Hebner

The 14th (January 2012) edition of the Carnival of Passive Investing is now live on Afford Anything at the link below. A big thanks to Paula (the owner of Afford Anything) for hosting! 

Carnival of Passive Investing # 14 - January 2012

This month, we were very honored to have passive investing author, Mark Hebner (author of the book, Index Funds: The 12-Step Recovery Program for Active Investors, and the founder/president of Index Funds Advisors, Inc.), helping to judge and rank the top 3 posts.

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

#1: What Boxing Taught Me About Personal Finance, by the blog, My University Money. “Every ‘tough guy’ out there thinks they can fight, and every guy at the water cooler who has read the business section thinks he’s Warren Buffett – so they both have stupid male egos in common,” the author says.
#2: Saving, Investing and Gambling from the blog, Arbor Asset Allocation Model Portfolio. This article discusses — you guessed it! — the difference between “investing” and “gambling.”
#3: What Are Dividends? Why Should You Care? The blog, Simply Investing, asks a simple question – “What’s a dividend?” – and explains it in commonsense, easy-to-understand language. This post explains why dividends are a great way for the truly lazy – er, I mean, passive — to kick back and earn some nice returns.


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% or 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 as well.


Thanks to our participants and host, Afford Anything. I (My Personal Finance Journey) will be our host of the next (February 2012 - # 15) edition, scheduled to go live on February 28th, 2012. 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 HQ submission form clicking here.

Also, I am now putting the final touches on the hosting schedule for 2012. Currently, all months have been claimed except for December 2012, so if you'd be interested in hosting on at the end of this year/beginning of 2013, take a look at the hosting schedule and then send me an email to get on the schedule.