Why Retirees Should Never Invest 'Passively'

The big debate within investment circles over the last few years has been between "active" and "passive" approaches. Active investing is the attempt to pick stocks (or bonds) and move into/out of the market to outperform broad market averages. Passive investing settles on total market index funds to capture the capital market return at relatively low costs. For retirees who are primarily responsible for investing their wealth over the next two to three decades to produce an ongoing income stream that will sustain their desired lifestyle, this is not just a philosophical consideration.