What Is Passiv? (Free Portfolio Rebalancing Software)

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Passiv

Passiv is a web-accessible platform where users can link a limited number of brokerage accounts. The platform enables investors to monitor and automate investments. 

As an entrepreneur, you’ll always need venues to grow your money. Passiv offers low management fees (portfolio level) and a Do-It-Yourself (DIY) investment process.

Passive was launched in the year 2017 by Brendan Lee Young and Brendan Wood, who are from New Brunswick, Canada.

In order to give customers access to a portfolio management tool, the company tied up with Questrade in 2019. Let’s begin. 

How does Passiv work?

DIY investors need a tool that will sync with their brokerage accounts.

Passiv is a tool that helps passive investors keep an eye on their investments and their assets. So by syncing your brokerage accounts they make it easy for you to monitor the investments.

In addition, the sync process removes any manual step of managing your investments online. So while enjoying an automated process, you can still stay in control.

Moreover, with Passiv, you can calculate your assets and holdings accurately without much effort.

Also, Passiv is set by default to calculate which assets are underweight.

So when you have cash, Passiv shows you which account or area in your portfolio needs to be rebalanced. You can even receive updates about your account when you are not there.

Passiv really brings a new definition to passive investing.

Passiv

What do you do to get started?

Getting started on Passiv is not much of a hassle. You have to first open an account with Passiv.

Afterwards, you link your brokerage account with your Passiv account. Questrade is an example of a brokerage account.

However, when you sync your Questrade account, Passiv uses an API. This API ensures that Passiv gets the information it needs without sharing your login details. So, your login information is secure.

By the time you link your account, you can get started on setting up your target allocations.

Passiv is not a Robo-advisor. Due to this, it lets you set up your target allocations according to your preference.

Although, a little help or guidance would be great. Passiv tries as much as it can to prevent influencing your targets in any way.

There are two ways that Passiv makes available for you to set your targets. You could either import your current Questrade holdings as your target. Or, you can build a new portfolio from scratch. It all depends on what you want to do.

You can also edit your targets later. Just click edit and save them when you are done.

In summary:

  • you begin by creating a Passiv account.

  • you click on the signup button to get registered. You will need to fill in your name, email and password of choice.

  • once you have signed up, you link your brokerage account with your Passiv account.

  • you set a target for all your accounts after linking them. This enables you to create goals for a duration of time. You can also select stocks and assets of your choice here.

  • you can sit back and let Passiv work its magic! Your portfolio is now on its way to better performance and proper growth.

What can I do with Passiv?

Usually, when your account is created, you can start to monitor your investments.

However, the functions of your Passiv account are not limited to doing just that.

On this account, you can set up your investment targets. Once you set them up, Passiv swoops in to make your investing process passive and easy.

Passiv also assists with the following:

  • It calculates the trades that can rebalance your portfolio. Passiv notifies you of such updates.

  • Passiv also notifies you of cash and dividend deposits.

  • You can execute the trades you need with one click.

Passiv’s job is to give you the right amount of balance in your portfolio. When you monitor your assets with Passiv, you can easily balance and rebalance them.

For instance; at the beginning of the month you started with a 50:50 ratio target on your assets. If by the end of that month you have a 70:30 ratio, Passiv will assist you in the balancing process.

In addition, the balancing process entails either selling some part of the 70 ratios to get back to 50; or you could buy some for 30 to get them even again.

Although, this process requires careful calculation. You can trust Passiv to accurately perform the balance you need. And with just one click!

Finally, Passiv provides you with the means to track your contributions to your portfolio performance. Also your dividend payments and your overall portfolio growth.

Is Passiv Free?

The number one appeal of Passiv is its free version.

Although, this free version is limited in terms of function.

However, you can upgrade your Passiv account to a Premium Plan. The Premium version costs $99 per year. 

The difference between the Free version and the Premium version is one thing. You can access notifications and automated calculations, but you cannot make trades on a Free account.

What features can I access on Passiv?

1. Multiple account portfolios

Passiv helps you to arrange your multiple accounts into one portfolio. For the accounts you want to bring under one umbrella, this Passiv feature can do that.

The portfolio allows you to connect several accounts; it is available to Elite users.

Moreover, you can create various portfolios according to risk tolerance levels or time limits. You are not limited to having one portfolio either. You can create various portfolios based on your goals and desires.

2. Asset-exclusion

This feature is exclusive to Elite users. It helps you as DIY investors to diversify your portfolio. You can use this feature to make your portfolio compatible with various asset classes and global industries.

So instead of having an individual stock that can derail your target accuracy, you can use the Asset-exclusion feature to temporarily exclude that stock from your calculations.

Also, as an index investor, you might consider buying assets that might not align with your target portfolio. Asset exclusion allows you to purchase such assets with your brokerage account without the need to worry about any fluctuations.

3. Advanced currency handling 

With Passiv, you can use this feature to keep currencies separate. This means that you can buy stocks or assets in any currency without the need to convert them. So when you buy stocks or assets in USD, you can keep them in USD. If you buy in CAD, you can keep them in CAD.

Asides from keeping your assets in their original currency, this Passiv feature helps you make calculations in each currency. It also considers your target allocations and aligns each currency accordingly.

Usually, holding several currencies might cost you some currency conversion charges. Passiv eliminates such charges to your brokerage account. Passiv makes this possible by altering calculations. This enables your account to retain cash and perform manual exchanges. You can also keep your currencies separate or allocate the excesses to their corresponding currency.

This Passiv feature works for subscribers of the Elite package.

4. Performance reports

If you need more comprehensive details of your portfolio growth, this is the best feature for you.

This Passiv feature allows you to keep track of your portfolio growth. As well as your dividends for each investment you have.

For the details, other platforms come as graphs and charts. Passiv instead gives you a comprehensive report. This report entails other details of your portfolio growth apart from dividends. It contains your contribution consistency. It also contains your actual portfolio returns versus the deposits.

With every detail, improvement and shortcomings spelled out, Passiv helps you to perform better allocations for your targets.

5. Cash management 

On Passiv, you aim at allocating your funds into assets. This is really Passiv’s default mode; it organizes 100% of your brokerage funds or other funds into assets for you.

On some days, you might consider something different. If you are looking towards cost averaging; whether dollar-cost averaging, you can use this feature for that.

The Cash management feature s divided into two modes to ease your cash management goals. They are:

Allocate at most

This is a feature that allocates a certain amount to each trade according to your specifications. This means that for every purchase on your portfolio, you can allocate a certain amount to go to every set of trades that you have set out.

Retain at least

This rule/ feature enables you to set aside a certain amount of cash in your account. This refers to a fixed amount that Passiv will exclude when making calculations.

This can be great for you whenever you need to explore your options. And if you prefer to have some fallback cash sitting around, you should use this feature.

How Safe is Passiv?

In terms of security, Passiv can give you the assurance of legitimacy and hi-tech protection. Passiv employs encryptions and a Read-Only Access. This means that Passiv is only allowed to copy information from your accounts; it cannot perform any form of transactions.

Also, Passiv interacts with your brokerage accounts by asking you for permission. Unless you grant Passiv permission into your account, it will not have any access to it.

It also does not store any of your credentials nor does it request them. When you link your accounts with Passiv, it can only read information. It is also granted Trade-enabled access. This permission is for trades (stocks and assets that you have approved).

Moreover, Passiv uses industry-standard firewalls and SSH keys. You can be rest assured that a backup of your data takes place whenever strong encryptions have taken place.

Also, during the rest and transit of your data, Passiv uses SSL encryptions.

Your brokerage institutions protect your credentials so that Passiv cannot store them or access the information it should not.

Overall, Passiv is safe and can be recognized as a legitimate platform for you to conduct your finances.

Benefit and Drawbacks Of Passiv

Investors and Entrepreneurs stand to benefit a great deal from Passiv and its features. As a web platform, Passiv operates with the goal of reforming and rebuilding your financial portfolio.

Here are some of the benefits you subscribe for with Passiv:

It is free

The most attractive feature of Passiv is that you can make use of its basic features without paying for them. Though you can upgrade your Passiv account if you wish, the free features are also efficient.

You receive alerts

Whenever there is an improvement in your portfolio, Passiv sends you a notification. You also receive notifications if there is a drift in your target allocations.

Also, Passiv sends you notifications about new trades.

You can be a DIY investor

With Passiv, you can easily place your investments by yourself. Passiv makes it easy for you by analyzing your portfolio and then sharing tips that align with your targets.

Also, Passiv lets you know when there are new trades that will grow your portfolio.

No need for manual input

For calculations, trade transactions and other inputs, Passiv does not require manual intervention. You can tryst Passiv to include the right figures and amounts. Though you can do a run-through just to be sure.

You receive detailed reports

Passiv enables you to analyze your portfolio growth. This is possible because Passiv gathers information for a period of time to show you how much your portfolio has grown. You receive performance reports of your accounts and your portfolio. This alone helps you to reorganize if there are any shortcomings.

It is secure 

In terms of security, Passiv employs high-grade encryptions to protect your data. Passiv does not have access to your credentials. And it does not have the permission to conduct any transactions through your registered accounts. Passive is safe and legitimate.

It is compatible with Questrade

You can enjoy Passiv best if you have a Questrade account. Passiv and Questrade have partnered to give you the best of financial portfolio services.

You can manage different currencies 

One of the features of Passiv enables you to buy and retain assets and stocks in the currency that they come. Passiv can separate them and calculate them according to each currency.

You can allocate your funds as you desire

Also, Passiv allows you to allocate your funds as you like. You can allocate a specified amount of funds to each target. And you can retain a fixed amount in your account for other purposes.

You can create and monitor more than one portfolio 

With Passiv, you can create portfolios based on your investment targets. Passiv supports this and assists you in monitoring the growth of each portfolio.

Easy portfolio rebalance 

If at any point in time your targets exceed their mark, Passiv can rebalance them easily. For instance, you set your target to a 50:50 ratio. And due to certain reasons, they exceed the ratio to 70:30. Passiv can do the calculations and bring them back to the original ratio. All you have to do is check the values and let Passiv do all the work!

Passiv has great features but it has some drawbacks as well. Though not extreme, they are still there.

Passiv

Passiv Limitations

It does not support enough institutions

Currently, Passiv doe not support enough financial institutions. As of this writing, Passiv supports only Questrade, Interactive Brokers and a few others.

This is due to the fact that Passiv connects to brokerage accounts using an open API. Not all financial institutions support this.

It currently only integrates with Questrade 

Also, Questrade is currently the most compatible institution with Passiv. Owners of Questrade accounts can enjoy the full benefits of Passiv. As for those who do not own Questrade accounts, they have to pay for some features. And oftentimes, their financial institution might not be supported by Passiv at all.

Passiv might not be useful to those who prefer spreadsheets 

Passiv’s number one feature is the absence of spreadsheets. Passiv might not be useful for those who prefer to rebalance their portfolio themselves or work with spreadsheets.

Passiv does not have an application

Currently, you can only access Passiv through a web browser. For those who might prefer to use their mobile phones to access their Passiv account, it might not be very convenient. A desktop is better to see all the contents of your dashboard.

Passiv does not provide recommendations 

Passiv also does not support recommendations like robo-advisors. Robo-advisors give suggestions based on your pattern of investments or activities. Passiv does not support or provide such a function.

 Is Passiv Free?

Once you get started with Passiv, you can access many useful features. These features are very user-friendly and quite efficient as well. Passiv is packed with many beneficial functions.

Moreover, the most attractive feature of any portfolio management platform is being free. Passiv has the Free tier and the Elite tier. These are a division of accounts that Passiv provides.

On a free account, you can rebalance your portfolio. You can also track your portfolio growth and performance.

The free account also supports alerts and notifications. You receive information about portfolio via the channels or methods available on Passiv. You also receive notifications about available trades and updates about cash that you can use for investments.

There are many useful features on this Passiv Free account.

For the Elite account, .you have access to upgraded features of the free account. You can manage more than one currency with this account. You can also create, connect and manage multiple portfolios.

Also, you can connect your accounts to one portfolio and manage them from there.

Frankly, the Elite tier is quite beneficial for you as a DIY investor. Those who own Questrade accounts are in luck. They can upgrade their Passiv account to the Elite tier at no cost!

For those who do not own a Questrade account, they can access the Elite tier with a $99 subscription per year.

$99 per year might sound like quite a lot. You should also take the features of this upgrade into consideration. If you invest using different currencies or you need more than one portfolio, this is not such a bad deal for you to hop on.

My Personal Thoughts On Passiv 

My impression of Passiv is overall positive; and so is my review. Passiv is extremely efficient with rebalancing and monitoring your financial portfolio.

This review covers all you need to know when you start out with Passiv. The signup process is straightforward and easy. Within a couple of minutes, you can get started on Passiv after signing up.

Moreover, you can start to see your Passiv dashboard become a hive of data and activities after you link your accounts.

Although, the drawbacks are present; you cannot rule out the functions that Passiv provides. Passiv is great to use despite the drawbacks. We can only hope for improvements from the creators.

Finally, Passiv is worthy of positive feedback. As well as recommendations. I would recommend Passiv to every investor and Questrade users.

I wonder if you have any experience with Passiv. If you do, what was your experience like? Would you like to share? And if not, why don’t you try Passiv today?

Final Words

Passiv is a relief tool for portfolio rebalancing. Investors, especially DIY investors, would enjoy using Passiv. This is because Passiv simplifies investment for you.

By subtracting the need for your involvement, Passiv lets you relax and make money. It simply removes the complications that come with DIY investing.

So if you are looking to rebalance your portfolio, Passiv is your go-to. As well as those who need a platform that allows them to have multiple portfolios, deal in different currencies and set boundaries on their cash.

You can also manage your multiple accounts and sit back for Passiv to do all the calculations.

Passiv is a major jackpot for those who want to relax as they engage in DIY investing.

Finally, those with Questrade and Interactive Broker accounts stand to benefit the most from Passiv. Passiv actively supports the users of these financial institutions and makes their experience even better.

Passiv might not offer you advice or countless functions, but it can be really great if you are looking to make passive investments. Passiv is also very helpful with actively building your portfolio.

Thanks for reading let me know your thoughts and comments below. 

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