Being passive aggressive

I characterise my investment style as passive-aggressive.

My investment strategy is 100% passive. Currently I split my portfolio between UK and US index funds, and seek only to achieve market return over all future time periods. Nothing more, and certainly nothing less.

My contribution strategy is 100% aggressive. When I was working, I used the excess between my income and consumption to maximise the amounts placed into tax free investment vehicles. I always selected dividend accumulation funds so any cash returned was immediately re-invested back into the index.

Now that I’ve stopped work and not earning additional investment funds, I’m aggressive in cash management. I keep 4 years of future lifestyle spend in cash and keep everything else in passive equity funds.

For me, four years of cash is enough buffer to allow me to sleep at night and still be passive aggressive.

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