Passive investing is all about the “long haul.” Passive investing holds a buy-and-hold mentality meaning you aren’t trying to anticipate the stock markets next move. Instead, your investments tend to follow safe low risk trends.  Passive investors buy more index funds instead of individual stocks. The purpose of buying big index funds (like the S&P 500) is to hold tiny pieces of hundreds or thousands of stocks which will generally follow the upward trend of the overall stock market.

Passive investors will care less about fast short term high risk gains, but they are more focused on their future. They are looking ahead for the big prize at the end of the tunnel and they ignore short term setbacks or downturns. At Valley Oak Wealth Management, we fully understand the idea of a safer approach with your money. After you take our risk assessment test, we can accurately map out the perfect portfolio to reach the growth that you are comfortable with.



Active differs from passive investing in that active investing either takes a portfolio manager or someone with experience in the stock market that has time to be constantly doing research and moving their money around. While the goals of both active and passive investing is to make money, active investing attempts to beat the stock market average returns and take advantage of short term price fluctuations.

This sort of investing takes deep analysis into the stock market, and takes people who understand the trends and can predict (hopefully) which stocks are going to beat the current uptrend (or downtrend) of the market. Usually a portfolio manager is used who oversees a team of analysts who try to determine where money can be made. Our professional team has provided our clients with exceptional returns on their investments while adhering to their risk number that they were assigned after taking our test.


So which is right for me???

            This all depends on your goals and what you are comfortable with! Given your risk assessment results, we will map your portfolio to match the risk you want to take. If you are a safer investor, then we will provide you with longer term “safer” investments that you won’t have to worry about. If you are the kind of person that likes taking on risks for hopes of big returns, then we can arrange your portfolio to reflect higher risk higher return