Getting Started With Passiv


If you’re following (or making the switch to) a Passive Investing strategy using low-cost index funds and/or ETFs, you can rest easy knowing that you’re not paying the high fees associated with actively managed funds.

While you do save on fees by managing your portfolio yourself, it can be time-consuming (and frankly, boring) to calculate how much of which asset(s) you should be buying to rebalance your portfolio.

That’s why we created Passiv.

The goal is to automate the tedious aspects of managing a portfolio, such as doing the rebalancing calculations, making trades, and investing deposits or dividends as they come into your account. These tasks get especially monotonous if you’re managing your entire household’s investments.

If you’re ready to cross those items off your To Do list and take back your precious free time, then Passiv is here to help!

Here’s how to get started in a few simple steps.

Step 1. Create a Passiv account.

If you haven’t made a Passiv account already, just click that Sign Up button in the top right corner.

Once you’re logged in with Passiv, you’ll need to authorize Passiv to access to your brokerage account. You can choose to give Passiv read-only or trade-enabled access. Read-only access allows us to give you real-time balance calculations and cash notifications. If you later decide you want to use the One-click Trades feature, you can authorize trading access through Settings > Authorizations > click the blue Authorize button.

Step 3. Set a target asset allocation for each account.

After you authorize access, Passiv’s dashboard will automatically display your investment accounts and their balances. Unlike a robo-advisor, Passiv doesn’t pick assets and set allocations for you, so the next step is to set up your target asset allocations. To do this, just drag the slider associated with each asset to the percentages you want.

Step 4. Sit back and let Passiv do the rest.

Once you’ve set your target allocations, Passiv will calculate the accuracy for each account and tell you whether any trades are needed to bring your account back into alignment with your target. For updated information, just click the Refresh button.

By default, Passiv is set to only calculate Buy trades. This means that when you have new cash in your account, it will indicate which assets in your portfolio are currently underweight, and how many units you should buy to bring your portfolio back to its target allocation.

The Buy-Only setting is extremely helpful if you do not want to incur selling fees. However, if you’d like to sell assets as part of your rebalancing, you can enable Sell calculations by going to Settings > Options > and turning Buy-Only to Off.

How do you know when you need to make a trade? Passiv will let you know when new cash hits your account, whether that’s in the form of dividends, a new contribution, or an account transfer. When you get one of these emails, your Passiv dashboard will have calculated trades waiting for you. You can then go to your brokerage’s website and make these trades.

Or, rather than having to go to yet another website and log in there too, you can simplify your financial To Do list even further by using Passiv’s One-Click Trades feature. This feature is available to all Passiv Elite subscribers. To become an Elite subscriber click here. Plus, Trial users get 60 days of Elite free: give One-Click Trades a try and see just how easy it is!

First published on June 19, 2018.