Getting Started With Passiv


Managing a portfolio can be tedious if you’re following a Passive Investing strategy using low-cost index funds or stocks within your brokerage account. This is why we created Passiv. The goal is to automate the tedious aspects of managing a portfolio, such as the rebalancing calculations, trades and investing new cash contributions or dividends as they come into your account. Of course, things get even more tedious if you’re managing your entire household’s investments. If any of this resonates with you, then Passiv may be just the tool you’re looking for!

Here’s how you can get started with Passiv:

Step 1: Authorize your brokerage account via the settings page.

After signing up, the first thing you should do is authorize Passiv to access to your brokerage account from the Settings page in Passiv. Passiv only needs read-only access to get started. This allows us to give you real-time balance calculations and cash notifications. If you decide that you’d like to access the One-click Trades feature, you will need to re-authorize Passiv to have trading access.

Step 2: Set a target portfolio for each account.

After you authorize access, Passiv will automatically detect your trading accounts and their balances. But there is no target portfolio set by default. You need to set this yourself.

The easiest way to set a target portfolio is to use the “import” button to look at your current holdings and use them as the basis for a target portfolio. Alternatively, you can manually enter your portfolio asset-by-asset using the “+” button and searching for the securities you want.

Finally, check the target percentages and make sure they are what you want.

Step 3: Sit back and let Passiv do the rest.

Once you’ve set your target allocation for your accounts, Passiv will compute the accuracy for each account and let you know what trades are needed to bring your account into alignment with your target. In case it doesn’t happen automatically, just reload the page. There’s a default “buy-only” setting in Passiv, which uses available cash for purchasing the underweight assets in your portfolio. This is extremely helpful if you do not want to incur selling fees. If you’d like to sell assets as part of your rebalancing, you can visit the “Settings” page to disable “buy-only” calculations.

How do you know when you need to make a trade? Passiv will let you know when new cash hits your account, whether it be dividends, a new contribution, an account transfer, or otherwise. When you get one of these emails, just login and check the calculated trades.

You can even take things a step further and use One-click Trades. This eliminates the need for you to login to your brokerage account to make the calculated trades. This, as well as other features, are available to all Passiv Elite subscribers. To become an Elite subscriber click here.

First published on June 19, 2018.