Active vs. Passive Investment Management--Hartford's Take On It

While I favor "active management", the use of mutual funds that are actively-managed per research and/or rules-based methodologies, there are sensible uses for "passive management" also.  So Potomac Wealth Strategies offers both.  The Strategic and Flex portfolio models use actively-managed mutual funds, and the Schwab Index funds use passively-managed "index funds" for the stock portion and an actively-managed tax-free (federal) bond mutual fund.

The Strategic models are best for long-term investors who don't mind occasional capital gains taxes being part of their overall financial picture, and they are ideal for use in tax-deferred accounts (IRAs, 401k-type accounts, and variable annuities).

The Schwab Index models are suitable for taxable accounts (individual and joint brokerage accounts), and for folks who just are not sold on "active management".

For more on the pros and cons of active vs. passive, here is an article from Hartford.  Best-known as an insurance company, Hartford also has a family of mutual funds, some of which are excellent.

Please contact me with any questions about the portfolios I manage for you, or if you want to know more about how I may be able to help you organize, save, and invest in pursuit of your long-term financial goals.

Thank you.

--Gary Partoyan
Financial Advisor
Potomac Wealth Strategies, LLC