"Active” vs. “Passive” Investing

The investment industry loves word games.

One of the biggest?

“Active” vs. “Passive” investing.

But you can’t beat the market by investing in the market (see how we beat the market below).

Alas, ask anyone what sounds better—active or passive—and they’ll pick active.

Here’s the simplified breakdown:

• Active means moving your money around often, hoping to strike gold.
• Passive means finding a good investment and sticking with.

But here’s the truth:

• Historically, the best results come from buying quality investments and letting them grow.
• The stock market has consistently provided average returns of around 10% per year (despite wars, recessions, and political drama).
• Chasing “active management” often leads to higher costs, lower returns, and more stress.

Why despite the evidence against it, is active investing pushed so hard?

Because commission-based advisors make money every time a trade is made.

More trades = more fees for them.

So is passive the answer?

Not necessarily.

We believe in an combination:

*Passive stock market investment
(because let’s be honest, you can’t beat the stock market by playing the stock market)

*Active, outside the stock market

(investments like real estate, data centers, and energy production of the future)

*Plus, we are fee-only, meaning we don’t constantly push risky investments to make a quick buck.

That’s how wealth is built.

That’s how anxiety is reduced.

That’s how your goals get met.

Jones FWM is different, and we’re proud of that.