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The Illusion of “Set It and Forget It”
Passive investing has become the default strategy for millions of investors. Index funds, ETFs, and robo-advisors offer a hands-off way to ride the market’s general trajectory. For many, it sounds like the ideal solution: low fees, minimal decisions, and automatic diversification.
But beneath that simplicity lies a critical tradeoff: you give up control. And in investing, control isn’t just about managing risk — it’s about building real wealth on your own terms.
At Infinity⁹, we don’t believe in bad markets. Only bad strategies. And blind passive investing, while elegant on the surface, often leads to unexamined risk and missed opportunity.
What Are You Really Buying Into?
When you invest passively, you're not just buying exposure to stocks — you're buying into the system.
Think of an S&P 500 index fund. On paper, it’s diversified. But in practice? It's heavily concentrated in a handful of tech giants. In 2024, just seven companies made up over 30% of the index. That’s not diversification — that’s trend-following at scale.
And because these funds are market-cap weighted, they force you to buy more of what's already expensive — whether or not it's a sound investment. That’s momentum, not strategy.
Passive ≠ Safe
Another myth: that passive investing is “safe” over the long term.
Sure, over 20 or 30 years, markets tend to go up. But if your timeline is shorter — say 5 or 10 years — the ride can get rough. And you have no control over when those drawdowns hit.
If you’re nearing retirement, selling a business, or moving international capital, a 30% drop in the index isn’t just a paper loss — it’s real money, potentially at the wrong time.
With passive investing, you’re not managing risk — you’re accepting it.
Control Is a Wealth Strategy
Smart investors don’t just chase returns. They manage outcomes. That requires control: of timing, of cash flow, of tax exposure, and of volatility.
That’s where private investments — especially private real estate — change the game.
At Infinity⁹, we help investors build what we call a Capital Framework: a strategy that balances public and private assets with clear purpose. Institutional-quality real estate isn’t just a hedge against market chaos. It’s a control mechanism. One that can generate stable income, preserve capital, and open doors to global mobility — without being at the mercy of Wall Street algorithms.
The Myth of Effortless Wealth
Passive investing sells the dream of effort-free returns. Just “set it and forget it,” they say. But here’s the truth: wealth doesn’t build itself. It’s engineered.
That doesn’t mean you need to spend every day trading or analyzing the market. But it does mean having a plan that aligns with your life, not just the S&P’s performance.
Passive investing is often pitched as neutral, but it’s not. It’s a choice to conform to a system. And for high-net-worth and globally-minded investors, that system isn’t always aligned with your goals.
How Passive Should You Really Be?
We’re not anti-passive. It has its place. For liquidity, ease, and access, ETFs and index funds serve a function. But they shouldn’t be your whole strategy.
Instead, ask yourself:
- Do I understand what I’m exposed to?
- Can I influence the outcome?
- Does this serve my long-term goals — or just mimic the market?
At a certain level of wealth, the goal isn’t to beat the market — it’s to exit it on your own terms. That’s what control offers. And it’s what passive investing, by design, removes.
The Real Tradeoff
Simplicity is valuable. But not if it comes at the expense of security, strategy, or opportunity.
You don’t need to pick between being passive or obsessive. But you do need a framework — one that lets you hold the steering wheel without losing your balance.
At Infinity⁹, we help investors build that balance. With private real estate and a long-term view, you can create wealth that doesn’t just grow — it endures.
