Why Work With Passive

Passive Capital Management (PCM) is a fee-only Registered Investment Advisor (RIA) founded in 2007. Jonathan Farber and Scott Reinhardt, CFA spent years at traditional brokerage firms before founding PCM with the core conviction that there was a better way to help clients achieve their investment goals. They formed PCM with the understanding that investment returns are generated by capital markets and asset classes, not by a certain investment product or investment professional. The job of the investment advisor is to listen to the client, understand what they are trying to accomplish, and then structure a portfolio that gives the client the highest odds of investment success. Rather than trying to control the uncontrollable, we spend our time on the things that are actually within our control: customer service, discipline, asset allocation, diversification, tax efficiency, and costs. We believe this approach will give our clients the best chance of enjoying a successful investment experience.

Listed below are five important questions to ask the person managing your money:

1) Are you a fiduciary?
2) How well diversified is my portfolio?
3) What is the expected annualized return of my portfolio and how much risk am I taking?
4) How has my account performed compared to relevant benchmarks?
5) What percentage do I pay annually, including product costs and advisory fees?

We do not try to outsmart the markets, predict the future, or make guesses with our clients’ money. We structure portfolios with passively-managed, low-cost, global asset class funds designed to an appropriate risk tolerance for each client. If you are interested in learning more about PCM and our investment philosophy, please give us a call or schedule a consultation.