If you plan to go passive, be prepared to make some active choices.
The fact is, financial advisors say, building a passive investment portfolio should involve more than simply plowing all your cash into one passively managed fund and calling it a day.
"Many consumers think that buying a [broad market] index fund is enough, but it's not that simple," said certified financial planner Chris Chen, a wealth strategist with Insight Financial Strategists.
Passive investing has been steadily gaining steam over time as investors pull their money from actively managed funds and instead pour it into lower-cost passively managed options, such as index funds and exchange-traded funds.
Each investment approach comes with pros and cons, and many financial advisors think employing a combination of both is the best strategy.