Carnival of Passive Investing: July 4th Edition!

american flag

Hello all and welcome to the July 4th edition of the carnival of passive investing!  Jacob over at My Personal Financial Journey was gracious enough to let me host this edition’s carnival.  It truly is an honor!

The carnival of passive investing focuses on the fundamentals of true “passive” investing.  That is, a focus on ignoring the noise, diversifying one’s money, and using tax efficient vehicles to invest for retirement. Jacob thought it was time to include a true passive icon, Larry Swedroe, as a judge this go-around.  Larry is someone who practices what he preaches.  To give you quick background, here is a short bio:

-MBA in Finance and Investment from NYU, and a BA in Finance from Baruch College

-Worked at Citicorp and Prudential Home Mortage

-Contributed over 6,000 posts to the Diehard/Boglehead forums

-Author of best sellers such as  The Quest for Alpha: The Holy Grail of Investing,  Today’s Successful Investor, 14 Simple Truths You Must Know, and What Wall Street Doesn’t Want You to Know (and much more)

-Runs a fantastic blog over at CBS Money Watch

Yes, Larry is a big hitter and knows his stuff.  If I ever meet him in person, I will shake his hand and thank him for forming my own personal financial principles.  If you want to retire comfortably and invest with very little stress, read his material!

Ok, back to the carnival.  What a great weekend to have a carnival!  You can spend the weekend celebrating our independence as well as read some passive investing articles!  In the spirit of July 4th, I’m going to include some snippets of history between the articles.

Without further delay, here is Larry Swedroe’s top pick for this edition!

My Personal Finance Journey presents Valuation-Informed Indexing vs. Passive Investing – Which is Better? “Truthfully, it was fairly difficult to figure out the exact method that defines Valuation-Informed Index Investing and makes it different from passive investing. This is most likely due to the fact that it doesn’t yet have a wide following, as opposed to passive investing where there are shelves full of books written on the subject!”


“Most Americans consider the 4th of July to be the beginning of the United States of America, but in truth the colonies had already declared their independence and had yet to actually win their freedom.”


My top three picks!

The College Investor presents Building a Diversified Bond Portfolio “Given all the different types of  bonds, and the risks inherit in each, you can mitigate some of the risk by diversifying your bond  portfolio.   Just likeinvesting in stocks, when one class of debt goes down, others usually rise.   Also, with different debts maturing at different times, you can hedge against some of the risks associated with interest rates.   Finally, with a large basket of debt types, you hedge against one debt defaulting.”

The Oblivious Investor presents It’s All One Portfolio “By a wide margin, the most common emails I receive from readers are a listing of the holdings in their portfolio and a request for feedback.  Based on those emails, one of the most common portfolio-construction mistakes is the desire to hold the same  asset allocation in each account (IRA, 401(k), taxable, etc.), even if doing so results in higher costs, complexity, and taxes.”

Boomer and Echo presents How to Invest Your Money, Part 4: Building Your Portfolio “By understanding your investment goals and becoming more active in your own financial planning, you can grow your investment porfolio safely and steadily.”


“The White House first celebrated July 4th in 1801 during the presidency of Declaration Drafter Thomas Jefferson. Communities around the nation celebrated the day in many unique ways including Bristol, Rhode Island’s 13 gun salutes at dawn and dusk in 1777, Massachusetts adoption of the holiday in 1781 and 1791’s first recorded use of the term Independence Day.”


Passive, passive, passive!

Compounding Returns presents Buy and Hold vs. Buy to Own Stock Investing

My Journey to Millions presents Passive Investing vs. Active Investing – What Takes More Guts?

Financially Consumed presents Market Timing and the Myth of Loss Aversion

Free From Broke presents Investing vs Speculating: The Difference Between Building Wealth and Gambling


“During the course of the American Revolution a second Continental Congress was formed. It is this group that adopted the final draft of the Declaration of Independence. The Declaration of Independence was drafted by John Adams, Ben Franklin, Thomas Jefferson, Robert R. Livingston, and Roger Sherman.”


It’s about dividends yo!

Retire by 40 presents Humble Beginnings of the Dividend Portfolio

Best Dividend Paying Mutual Funds presents the 5 Best Dividend Mutual Funds with High Income

Dividend Growth Investor presents How to Live Off Dividends in Retirement

Free from Broke presents How to Use a Stock Screener and Build Your Dividend Stock Analysis Template


“Even during the Revolutionary war July 4th was celebrated by the Patriots. It is said that George Washington celebrated July 4th 1778 by allowing his men double rations of rum.”


Passive tools for success

Outlaw Finance presents Online Stock Broker Comparison for Do-It-Yourself Investing

PT Money presents Betterment: We’re All Investors Now

Budgeting in the Fun Stuff presents A Pension – Seen as a Blessing and a Curse


“While celebrations on July 4th during the American Revolution were modest, after the war ended in 1783 the Fourth of July became a holiday in many places.”



Cash Money Life presents Advantages of Direct Stock Purchase Plans

Stupid Cents presents A Look at US Savings Bonds: EE vs. I Series Savings Bonds

Wealth Informatics presents Why you Should Not Use your 401k

Outlaw Finance presents The Difference Between Roth IRA and Traditional IRA


Let the celebration begin!

It’s been my pleasure to host the 7th edition of the Carnival of Passive Investing.  A big thanks goes out to Larry Swedroe for helping us judge this edition!

If you’d like more info on this carnival go here.  Also, if the carnival site gives you trouble, you can always use the blog carnival workaround.  Thanks for participating everyone!

photo by Beverly & Pack