Life insurance secures the financial future of the departed, sparing loved ones from the burdensome expenses of this inevitable situation. With a history of widespread adoption, it emerged as a critical demand in the insurance sector, becoming a modality that resonates with users across generations.

The grief experienced upon the loss of a loved one is akin to a bitter elixir that all individuals must eventually taste. However, accompanying this emotional turmoil are the inevitable financial obligations associated with various services such as funerals, transfers, and cremation. These expenses constitute a considerable burden, ranging between $2,000 and $3,000, depending on the family’s specific requirements.

It is a valuable resource that not only eases the financial strain but also liberates grieving relatives from the intricate administrative procedures that follow such a sad event. The practicality of this insurance becomes evident as it shoulders the responsibilities of post-mortem processes, turning a potentially overwhelming situation into a more manageable one.

While the monetary amount may not be excessive, securing this safeguard is prudent. By doing so, you shield yourself from this fixed economic cost and bestow upon your descendants the invaluable gift of financial peace during a challenging time. Consider it a legacy that transcends generations, a gesture your children or grandchildren will appreciate and cherish. Solidify this commitment now, ensuring that your loved ones are spared from the burden of both emotional and financial distress in the aftermath of your passing.

Reasons for Contracting Life Insurance

This insurance type carries significance beyond financial protection, delving into sentimental value. While there are more specialized policies designed to cater to specific needs, death insurance’s unique appeal lies in its tranquility since its inception. It presents an intriguing opportunity to tailor its provisions to your requirements, broadening its scope per your evolving needs.

It’s essential to acknowledge that this customization and added coverage come at a cost, potentially making the policy more expensive. Therefore, the key to optimizing this product is a thoughtful analysis of whether these additional coverages align with your interests and needs.

Consider, for instance, the inclusion of services such as the transfer of the deceased and a companion from the place of death to the chosen funeral location, both nationally and internationally. This proves to be a valuable provision for individuals residing in a different location from their desired burial site. Many have found themselves in situations where family and friends face challenges managing such logistics. By opting for this coverage, you preemptively address this issue, rendering the insurance more financially advantageous than initially perceived.

In essence, the profitability of death insurance is intricately tied to its ability to adapt to your unique circumstances. Careful consideration of the additional coverages ensures that the insurance provides peace of mind and proves to be a strategically sound and economically viable choice in the long run.

The Emotional Factor is Significant  

Undoubtedly, the utilization of this insurance product is typically deferred until the later stages of life, leading to a potential delay in its formalization. The emotional dimension surrounding end-of-life discussions makes individuals hesitant to broach such topics. However, a critical caveat exists—certain insurance companies may not accept formalization beyond the age of 80.

In light of this, the involvement of a reputable insurance broker becomes profoundly relevant. Their expertise becomes a guiding force, ensuring you are well-informed about when to finalize the contract and the specific coverages that align with your needs.

It Covers All Family Members

This insurance extends its coverage to encompass all family members, making it an inclusive option for individuals of all ages. However, it’s important to note that as age increases, the premium becomes more demanding. This adjustment reflects the heightened risk assumed by the insurer due to age-related factors.

Despite the age-related premium adjustments, a notable advantage is the ability to include all family members under the umbrella of a single policy. This consolidated approach simplifies the coverage management for the entire family, offering a comprehensive solution for various needs.

Moreover, the flexibility of this insurance product allows individuals to choose from a range of coverages, tailoring the policy to their specific requirements. These coverages may include funeral burial expenses, transfers, repatriation, incineration, administrative procedures, and even assistance at the agency. This versatility ensures that the insurance adapts to each policyholder’s unique circumstances and preferences, providing a more personalized and comprehensive solution for end-of-life planning.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

A while ago, we realized that things had to change and that, among other things, we had been swept up by the shopping addiction, fuelled by billions in advertising.

We may have realized that the only solution was changing the economic system. Change to one in which you will buy less, save more, and share what you have with others.

Embracing a New Economic Movement

In the short term, an economic movement appeared in which everyone, especially young people, had an instrument to quickly and effectively spread this movement based on sharing what we have. This instrument, the Internet, has allowed millions of people to find others to share what they might need.

The Rise of the Sharing Economy

Moreover, so was born what we call the economy of sharing, a different form of economy that depends much more on social capital than market capitalization and feeds more on social trust in common goods than on the unknown forces that govern the market.

The Convergence of Technologies

The fact is that although the Internet of Communications has a facilitating function, merging with the Internet of Energy and Logistics.

In the coming years, to create an eco-intelligent infrastructure that can operate at a marginal cost close to 0, other forms of sharing, such as rent, distribution networks, and cultural, professional, and technical exchanges, will grow extraordinarily.

Shifting Paradigms

Indeed, the day this happens, the production and the exchange in collaboration will stop being a marginal sector and become the dominant paradigm. Capitalism will be the rare thing, not the other way around as it is now.

We increasingly practice collaborative consumption in traditional sharing, trading, trading, lending, renting, giving, or exchanging, but redefined by technology and peer communities.

Collaborative consumption makes people aware of the advantages of accessing products and services instead of owning them, the benefits reflected in saving money, space, and time, the new friends we make, and the feeling of being part of an active community.

Environmental Benefits

We cannot forget that this system also has advantages from the environmental point of view, such as increasing eco-efficiency, reducing waste, stimulating the development of eco-intelligent products, and eliminating surplus due to excess production and consumption.

Recognizing Companies in the Collaborative Economy

In an article by Rachel Bootsman, she shared five key elements to recognize companies driven by the collaborative economy.

• The main idea of the business is to discover value in unused or underutilized assets, either because of their monetary or non-monetary benefits.
• The company has a clear mission that is driven by values. It is based on essential principles such as transparency, the human condition, and authenticity for short- and long-term strategic decisions.
• Suppliers on the supply side must be valued, respected, and endowed with power since companies acquire a commitment to boost their economic and social development.
• Customers must find a more efficient way to obtain the goods and services they need on platforms.
• You must build the business based on decentralized networks to create a sense of belonging, collective responsibility, and mutual benefit in conjunction with the community they develop.

The Role of Trust in the Sharing Economy

The sharing economy is equal to the efficient use of resources for a well-organized economy. Various authors strive to inject the value of trust in creating relationships and a reputation for sharing economy. The exchange or transaction parties must be trustworthy to make your fair exchange successful. In this way, trust will make your payment and delivery process straightforward. It builds a timeless bond between the supplier and the consumer. Otherwise, there will not be an essential exchange or transaction. 

Transparency in Data Sharing

Primarily, openness and transparency belong to the sharing of data. As a result, users get access to resources. The best example of such a type of trading is the Airbnb network, which comprises home and residential space providers. It starts with information transparency and presents the database to more significant customer communities looking for living spaces. This way, you will have more chances of links between goods or services providers and clients. 

Expanding Business through the Sharing Economy

The sharing economy is the best way to expand business at both online and traditional levels. Decentralized companies always come up with the best and good stance in the market. In this case, consumers and suppliers enjoy their trustworthy and timeless bond.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Suppose you are considering resigning from a full-time, tiring job or stressed about paying your bills. You are wrong if you blame your luck for all these tensions.

You can make your luck, set yourself up for success, and even set a good financial backup plan.

Good fortunes are tied in with focusing, using sound judgment, and remaining positive. Here are a few ways to make your luck and budgetary good fortunes for life. Mentioned in the article are a few ways that can allow you to make your luck. Good luck is often needed when you are trying to achieve financial plans.

Be Social and Enhance Your Chances

Try to make proper connections when you go out and converse with different individuals. Widen your group of friends and fabricate your professional contacts. One of the quickest and ideal approaches to gathering good luck is to put yourself out there. You make a fortune when you meet more people. Every individual brings their references, and more references means links. They bring opportunity.

Also, keep in mind to forget your old companions. Good luck comes with good people. So, please stay in contact with those who have supported you in your times of need, with whom you have constructed stable bonds, the people you know you can rely on. Ensure you watch out for those connections since they are the ones who bring you good times.

Make Financial Independence Your Priority

Everything begins with making sure you have enough cash saved to help you do the things you want to do. Set your mind on becoming financially independent. Only sound financial judgments and choices will follow if you place your mind as such. Setting an objective that lets you become independent is always a good idea.

Remind yourself every day that you can earn and you can become independent. Write it down or make a note on your cell phone,” I am independent, and I will save more money before the year is over.” Motivate yourself, and then good luck will come along.

Envision Your Steps Towards Success 

When you envision yourself going towards success, good luck favors you. Also, more favorable luck comes along when you give dedication. For example, the best competitors imagine winning before the race begins. Imagine you are planning for a meeting or a significant event; envision those claps of appreciation. These positive, insightful reactions prepare you well and increase your confidence.

Picture your way to progress and make sense of where you need to be, and good luck will follow.

Be Optimistic

Anticipate that great things will happen. Be determined and remind yourself that you will not give up. Start saving today and accept that you will keep on saving. Having an inspirational viewpoint and optimistic thoughts can help you grow faster.

Take a moment from your busy routine and consider how fortunate you are. While receiving your paycheck, do not focus on how much tax was deducted; instead, see how much you received. Think of what you can do with that money you have earned. When you think this way, you can shape your good financial luck.

Educate and Instruct Yourself

People with a progressive mentality are the people with good fortune. Only by proper education and knowledge can you build a progressive mind. So, educate yourself! Try to learn about new things constantly. Read more books on money-related autonomy, finance, or investment. Read online articles that contain the latest news on business. Visit informative websites and blogs, or even watch videos.

When you learn more, you improve more, and when you improve more, you increase your financial intelligence.

Leverage From Engaging Opportunities

People have ideal aims for retirement income as they have been experiencing conservative investors in most of their careers. According to a well-experienced financial advisor, you can make massive and engaging contributions to your retirement accounts after age 50. For you, this trick will be the icing on the dream comes the proper cake. You must check the chances of putting further away after crossing 50.

Last Words

Finally, your financial good luck always depends on your choices. So, be positive, optimistic, attentive, and open-minded. Take small steps while looking for financial independence. Be grateful while taking each step.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Discovering online opportunities to earn money has become increasingly popular, and it’s no surprise. If you’re eager to explore ways to make money from the comfort of your home, you’re in for a treat. I’ll be sharing the top ten ideas for online income, complete with details and examples that draw from real-life success stories of individuals who have embraced remote work as a lifestyle.

Finding the optimal way to earn money online is a personalized journey, and the best approach varies based on individual circumstances. Rest assured, the potential to generate additional income online is well within your reach.

Earn Money with YouTube

Unlocking the potential to earn money through YouTube can be a game-changer, given its widespread daily user engagement. You have two primary avenues for monetizing your presence on YouTube: incorporating ads into your videos or driving traffic to a dedicated webpage.

The first option involves placing ads strategically within your videos, capitalizing on the vast viewership the platform receives each day. Alternatively, you can redirect the substantial traffic from your YouTube channel to a designated webpage, opening up additional avenues for revenue generation.

In essence, YouTube offers a dynamic platform where your content can captivate audiences and serve as a lucrative channel for financial growth. Whether through ad revenue or web traffic, there are diverse opportunities to explore and capitalize on YouTube’s immense potential.

Attract Traffic to a Website

Enhancing traffic to your website, whether it’s a blog or a business page, can be effectively achieved by leveraging YouTube. Consider creating videos relevant to your website’s theme and uploading them on YouTube. Seize the opportunity to promote your website within the videos and include a link in the comments section.

The advantage lies in the visual appeal of videos, making them a compelling medium to attract attention. With fewer videos than written articles, your content stands out, making it easier for individuals to discover your website while searching for relevant information. This approach can significantly boost your website’s visibility and attract a broader audience.

Earn Money with Surveys

Engaging in paid surveys to earn money is a straightforward process with minimal complications. Numerous websites claim to compensate individuals for completing surveys, and the key lies in carefully selecting the platforms you choose to register on. It’s essential to discern between companies that genuinely fulfill their payment promises and those that do not.

Upon selecting reputable survey websites and completing registration, you’ll start receiving surveys, typically delivered via email. Some platforms offer monetary compensation for each survey completed, while others provide points that can be later redeemed for gifts or gift vouchers.

Sell Your Items

The most straightforward approach is to sell items that you already own. This could involve decluttering your living space and replacing unused or unwanted items. It turns your clutter into a source of extra income. Alternatively, you can set up an online store to showcase and sell these items more efficiently.

This method helps you make money and promotes a minimalist lifestyle by encouraging you to let go of things you no longer need. It’s a win-win situation where you declutter your space while earning extra income.

Set Up an Online Store

If you want to take selling beyond just your items, consider setting up an online store. This opens up opportunities to sell new or handcrafted items, allowing you to tap into a broader market. Platforms like Etsy or eBay provide convenient spaces to showcase and sell your products to a global audience.

Whether it’s vintage finds, handmade crafts, or unique items, establishing an online store enables you to turn your passion or creativity into a profitable venture. It’s a dynamic way to make money while doing something you enjoy.

Make Money with a Blog

Monetizing a blog is a widespread pursuit, with many individuals aiming to achieve financial success through this platform. While it’s true that the journey isn’t always easy, there are various approaches to making money with a blog. Let’s explore some of them:

Advertising Revenue:

• Display Ads: Integrate display ads on your blog using ad networks like Google AdSense. You earn money when visitors click on or view these ads.
• Sponsored Content: Partner with brands for sponsored posts or content involves creating content that promotes a product or service in collaboration with the brand.

Affiliate Marketing:

• Promote products or services through affiliate marketing. You earn a commission for each sale or lead generated through your unique affiliate link.

Sell Your Products or Services:

• If you have products or services to offer, your blog can serve as a platform for sales. This could include anything from e-books and online courses to physical products.

Membership or Subscription Models:

• Offer premium content or resources to subscribers who pay a membership fee. This creates a recurring revenue stream.

Freelance Writing and Consulting:

• Showcase your expertise through your blog and offer freelance writing services or consulting. Many businesses are willing to pay for expert insights and content.

E-books and Online Courses:

• Create and sell e-books or online courses related to your blog’s niche. This allows you to monetize your knowledge and provide value to your audience.

Donations and Crowdfunding:

• If your audience values your content, you can request donations or set up crowdfunding campaigns. Platforms like Patreon provide a space for this.

Event Sponsorship and Speaking Engagements:

• As your blog gains popularity, you may receive opportunities for sponsored events or speaking engagements, providing additional income.

Remember, success in monetizing a blog requires time, dedication, and consistency. Combining multiple revenue streams can enhance your overall income and make your blog a sustainable source of revenue.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Passive Management: Key Pros and Cons to Consider

Passive management pros and cons center on a fundamental trade-off: lower costs and consistent market returns versus limited upside potential and no downside protection. This investment strategy, which tracks market indexes rather than trying to beat them, has captured 43% of global market share due to its cost-effectiveness and long-term performance, but it comes with significant limitations that investors must understand.

As someone who has guided hundreds of small business owners through their investment decisions over two decades at Complete Controller, I’ve witnessed the passive investing revolution firsthand. When I started my cloud-based financial services company, actively managed funds dominated portfolios, but today I regularly see clients achieving better long-term results with passive strategies—though not without careful consideration of the drawbacks. This article will empower you with the knowledge to evaluate whether passive management aligns with your financial goals, teaching you how to leverage its strengths while mitigating its weaknesses through strategic portfolio construction.

What are the pros and cons of passive management?

• Passive management offers lower fees, tax efficiency, and consistent market returns while limiting upside potential and providing no downside protection
• Lower fees typically range from 0.03% to 0.20% versus 0.5% to 2.0% for active funds, dramatically improving long-term returns
• Tax efficiency results from minimal portfolio turnover, reducing capital gains distributions
• Market-matching returns provide predictable performance but cap gains at index levels
• Zero downside protection means full exposure to market declines without defensive positioning

Understanding Passive Management Fundamentals

Passive management revolutionized investing by offering a simple yet powerful approach: track market indexes rather than attempting to beat them. This strategy emerged from academic research proving that most active managers fail to outperform their benchmarks after accounting for fees and taxes.

Index funds and exchange-traded funds (ETFs) serve as the primary vehicles for passive investing. These funds hold securities in the same proportions as their target indexes, providing instant diversification across hundreds or thousands of stocks. The S&P 500 index fund, for instance, gives investors ownership stakes in America’s 500 largest companies through a single purchase.

The growth statistics tell a compelling story. Passive funds managed just $23 billion in US stocks during 1993, representing 3.7% of combined active and passive assets. By 2021, this exploded to $8.4 trillion, capturing 53% of the market and representing 16% of the entire US stock market capitalization.

Lower Costs Drive Superior Long-Term Performance

Cost efficiency stands as passive management’s greatest advantage, creating a mathematical edge that compounds powerfully over time. When you invest $100,000 in a fund charging 0.05% annually versus one charging 1.5%, the difference exceeds $400,000 over 30 years assuming 8% annual returns.

Over the past decade through 2024, only 22% of active funds survived and outperformed their passive counterparts, while in large-cap equity specifically, just 7% of active funds beat their passive rivals over 10 years. These statistics reflect the difficulty of overcoming the fee disadvantage, especially after accounting for trading costs and taxes.

• Vanguard Total Stock Market Index charges 0.04% expense ratio
• Average actively managed large-cap fund charges 0.85%
• Fee difference compounds to significant wealth erosion
• Lower costs translate directly to higher investor returns
• Mathematical advantage increases with longer holding periods

The evidence becomes even stronger when examining specific fund categories. Large-cap blend funds showed particularly poor active management results, with 93% failing to beat passive alternatives over decade-long periods.

Tax Efficiency and Market Transparency

Passive funds generate minimal taxable events through their buy-and-hold approach. Active funds trigger capital gains distributions through frequent trading, creating tax liabilities even when investors hold their shares. Index funds only sell securities when companies leave the underlying index, dramatically reducing taxable distributions.

ETFs provide additional tax advantages through their unique structure. When investors sell ETF shares, they trade with other investors rather than redeeming shares from the fund company. This mechanism allows ETFs to avoid triggering capital gains that get passed to remaining shareholders.

Complete market visibility

Transparency represents another crucial benefit of passive investing. You always know exactly what securities your fund holds because it mirrors a published index. Active fund holdings change constantly based on manager decisions, creating uncertainty about actual portfolio composition.

This transparency enables precise asset allocation and eliminates style drift—when fund managers gradually change their investment approach. Many growth fund managers, for example, shifted toward value stocks during market rotations, surprising investors who thought they owned growth-focused portfolios.

Limited Upside Potential and Market Dependency

Passive management’s fundamental limitation lies in its performance ceiling. By design, index funds cannot outperform their benchmarks and typically underperform slightly due to fees and tracking errors. This constraint becomes frustrating during periods when skilled managers identify exceptional opportunities.

Warren Buffett’s million-dollar bet provides fascinating context here. While Buffett famously won his wager that an S&P 500 index fund would beat hedge funds over 10 years, achieving 125.8% returns versus the hedge funds’ 2.8% to 87.7% range, his own Berkshire Hathaway significantly outperformed both during the same period. This illustrates passive management’s trade-off: reliable market returns without the possibility of exceptional gains.

• Index funds cap returns at market levels minus fees
• No ability to capitalize on mispricings or trends
• Missing sector rotation opportunities
• Unable to concentrate in best-performing stocks
• Forced to hold overvalued securities in the index

Market dependency creates additional challenges. Passive investors experience every market movement without buffer or protection, riding indices through peaks and valleys without strategic adjustments.

No Downside Protection During Market Crashes

The absence of defensive capabilities represents passive management’s most significant vulnerability. During the 2020 COVID crash, the S&P 500 plummeted 34% in just 33 days. Passive investors absorbed these losses entirely while some active managers reduced equity exposure or shifted to defensive sectors.

Active managers possess multiple tools for managing downside risk:

1. Increasing cash allocations during uncertain periods
2. Rotating into defensive sectors like utilities and consumer staples
3. Using options strategies for portfolio protection
4. Reducing exposure to overvalued market segments
5. Shifting geographic allocations based on economic conditions

Passive funds mechanically follow their indexes regardless of valuation extremes or economic warnings. This rigid adherence means buying more of bubbling sectors as they grow larger in the index, potentially increasing risk at the worst possible times.

Tracking errors compound problems

Even perfectly managed index funds fail to match their benchmarks exactly. Fees create automatic underperformance, while cash holdings for redemptions create additional drag. Some specialized sector ETFs showed surprising divergences from their intended exposures, with technology ETFs significantly underweighting major tech companies due to index methodology quirks.

Strategic Implementation for Maximum Benefit

Success with passive management requires thoughtful implementation beyond simply buying index funds. Asset allocation decisions matter more than individual fund selection, determining 90% of long-term returns according to academic research.

Start with broad market exposure through total stock market or S&P 500 index funds for US equity allocation. International diversification through developed and emerging market index funds reduces home country bias while maintaining cost efficiency. Bond index funds provide portfolio stability, though active management often adds more value in fixed income markets.

• US stocks: Total market or S&P 500 index funds
• International stocks: Developed and emerging market indices
• Bonds: Investment-grade corporate and government indices
• Real estate: REIT index funds for inflation protection
• Regular rebalancing maintains target allocations

The Hybrid Approach Solution

Rather than choosing exclusively between passive and active strategies, sophisticated investors increasingly adopt hybrid approaches. This method uses passive funds for efficient market segments like large-cap US stocks while employing active management where skill adds value.

While passive management generally outperforms, 2024 data shows active management found success in specific areas: 70% of actively managed small-cap strategies outperformed their benchmarks, and active bond funds had a strong year with over 60% of fixed-income managers beating their passive peers due to successful credit risk positioning.

Small-cap stocks, emerging markets, and high-yield bonds represent less efficient markets where research and skill create advantages. Many investors allocate 70-80% to passive core holdings while using active funds for specialized exposures. This combination optimizes costs while preserving flexibility for tactical opportunities.

Final Thoughts

After guiding thousands of business owners through investment decisions over two decades, I’ve learned that passive management works best as a portfolio foundation rather than a complete solution. The strategy’s advantages—dramatically lower costs, superior tax efficiency, and consistent long-term performance—make it ideal for core holdings and long-term wealth accumulation.

The limitations require honest acknowledgment. Accepting market returns means missing exceptional opportunities while enduring full downside exposure during crashes. Yet for most investors, especially busy entrepreneurs focused on growing their businesses, passive management’s simplicity and reliability outweigh these constraints.

Smart implementation combines passive management’s strengths with strategic modifications to address its weaknesses. Use index funds for efficient market exposures, maintain appropriate asset allocation, and consider active management for specialized niches. Most importantly, stay disciplined through market cycles, allowing compound returns to build wealth steadily over time. Contact the experts at Complete Controller to discover how professional financial guidance can help you implement these strategies effectively within your unique business and investment framework.

Frequently Asked Questions About Passive Management Pros and Cons

What is the main advantage of passive management over active management?

The primary advantage is cost efficiency—passive funds typically charge 0.03% to 0.20% in fees compared to 0.5% to 2.0% for active funds, leading to superior long-term returns for most investors through compound savings that can exceed hundreds of thousands of dollars over decades.

Can passive management protect against market downturns?

No, passive management offers no downside protection during market declines since index funds mechanically follow their benchmarks downward without defensive positioning, meaning investors experience full market losses during crashes like the 34% drop during COVID-19.

How do passive management returns compare to active management historically?

Over 10-year periods, only 22% of active funds survive and outperform their passive counterparts, while passive funds consistently deliver market returns minus minimal fees, with the performance gap widening in efficient markets like large-cap US stocks.

What are the tax benefits of passive investing?

Passive funds generate fewer taxable events due to minimal portfolio turnover, making them more tax-efficient than active funds that frequently buy and sell securities, with ETFs providing additional advantages through their unique structure that avoids triggering capital gains distributions.

Is passive management suitable for all investors?

Passive management works best for long-term investors seeking market returns with minimal maintenance, but may not suit those needing specialized strategies, downside protection, or who have shorter time horizons requiring more tactical flexibility.

Sources

• Capital Topics. (2024). “The Passive Versus Active Fund Monitor.” Raymond Kerzerho. PWL Capital.
• Complete Controller. (2024). “How to Streamline Your Investment Portfolio.” Jennifer Kimble. www.completecontroller.com
• ETF Trends. (2024). “2024 SPIVA Report Reveals 2 Areas Active Outperforms.” S&P Global.
• FINRA. (2024). “Active vs. Passive Investing.” www.finra.org/investors/active-vs-passive-investing
• Investopedia. (2024). “Pros and Cons of Passive vs Active Management.” www.investopedia.com/articles/investing/070914/pros-and-cons-passive-vs-active-management.asp
• London School of Economics. (2024). “Passive Investing and the Rise of Mega-Firms.” Dimitri Vayanos and Paul Woolley.
• Morningstar. (2024). “Active Funds Trailed Passive Peers in 2024.”
• Purpose Built Financial Services. (2024). “Warren Buffett’s Million-Dollar Bet: A Lesson in Passive Investing.”
• TD Direct Investing. (2024). “What is Passive Investing & How it Works?”
• Wikipedia. “Passive Management.” en.wikipedia.org/wiki/Passive_management

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Reviewed By: Brittany McMillen

Brittany McMillen

Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.

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Process Costing is a method of determining the manufacturing cost at each stage, and it is assumed that the price of each unit produced is the same. As it comes under the branch of operation costing, it makes cost pricing easier. It includes accounting methods in many organizations or industries where the standardized product is produced and passed through multiple processes to be transformed into the final product.

The methods of calculating production costs are as follows.

First in First Out method (FIFO)

FIFO is a complex method of accounting, but it is significant in that it helps determine the cost of a product when its manufacturing is initiated, the time it is completed, and the current price of that product estimated with its initial cost.

Weighted Average Method

It is the simplest method of process costing as it depends on assumptions. The price of each unit produced remained the same until it was produced.

Average Method

It is the process of the weighted average method. The cost of the product that begins to produce is standardized rather than the actual cost. Therefore, it is sometimes called a standardized method of product costing.

You can easily find the direct costs, including manufacturing, labor, and raw material costs. In contrast, you will not find the indirect cost due to the numerous factors involved in the production. Expenses like the salary of access to employees, insurance, quality assurance, and depreciation rate all come under indirect cost. 

In an organization, production is continuous and standardized, as product costing is a sequential process, so it simultaneously calculates the cost of each unit produced. Process costing gives a complete account of price per product; therefore, you can predetermine the output cost. It reduces risk factors and additional losses. It may include the cost of byproducts and raw materials, thus satisfying the investment sheet with a direct and indirect cost.

For example, an application development organization like ABC International produces its products. Each product requires working from different departments, like the casting or production department, so the costing process is divided into different sections. Thus, accounting gets a lot easier for the direct cost of the production sector and the indirect cost of overhead labor and IT facilities.

An organization focuses more on the fact that input cost comes out as output cost. Process costing is the optimal method of monitoring all expenses included in a production process. If there is any change in the price of the raw material, then it will affect the final product cost. Therefore, it is necessary to reprice in such situations. Chevron Corporation is a petroleum company that produces petroleum products. As there are continuous fluctuations in petroleum products, management needs to keep a strict check on the production of each cost.

Cost Accounting 

When companies must make cost-effective products and enhance profits, they use cost accounting. It analyzes all prices associated with your company’s financial progress. The way price accounting is done changes according to the nature of the industry. Understand this by having an example of an advertising company. It works according to a series of different projects. In this case, job costing will refer to the correct usage of the cost accounting process. Company owners will record and analyze each project with all prices that relate, respectively. 

The manufacturing unit must analyze the cost of production. It should change from one another in which you produce all manufacturing products in terms of product variety and type. Spare parts-creating companies have features in batches. That’s why their costing process should be according to the collection costing. If they produce bulk items and standard products, the costing process will be Process Costing. The pricing strategy of the paper manufacturing unit should consist of the cost of finishing, pulp to paper, beating, and making pulp costs. Thousands should be in the pricing range. 

There are different costing processes.

Operation Costing

Process costing methods and operating costing methods are the same. The core difference between them is that it is suitable for various operations. Mostly, Toy manufacturing companies use this method. 

Unit Costing

If your team produces only one product, you will use the unit cost process to set its cost. You will divide the total price by the number of units and finalize it according to the unit cost. This method primarily benefits paper, textile, and cement manufacturing companies.

Operating Costing

Define and recognize services by operation costing process for the service industry. Hospitals and railways mostly use this costing method.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

We live in an age where technology is helping us reach new heights. Going back a century, you will notice lift patterns vastly different from today. Concepts like the internet and digital marketing can change how we live forever. While the internet is changing our homes, digital marketing is reshaping how we do business.

A cursory look reveals that digital marketing is all around us. Digital marketing is a vast field that comprises blogs, websites, search engines, social media, magazine sites, digital libraries, and anything available online. This variety of options suggests that digital marketing is here to stay and will continue to dominate for many years. Here are seven reasons you should consider digital marketing for your business.

Dynamic

Digital marketing has many manifestations. With so much tech around us today, the need to stay connected is a must. Thanks to innovative concepts such as digital marketing, staying connected is easier than ever. Everything around us is just a click away.

From business to education, jobs to sports, digital marketing makes it possible like never before. One can say that digital marketing is a concept that creates ease in our daily lives.

Promotion

Digital marketing comes in handy for promoting and marketing your business and products. The sheer reach of digital marketing is something other marketing channels can only dream of. Think about it: you have access to 71% of internet users through social media. You can market your products and services for free.

Furthermore, you can use paid and affiliate marketing by spending a fraction of the cost of paying for marketing on other channels. Digital marketing is trendy and expansive, so you need not worry about gaps and spaces in your marketing campaign. Whatever you promote will reach your desired audience.

Support

Though most people would prefer to get human support when needed, that is not always feasible. Therefore, we now have chatbots as support staff for queries from online users and buyers. You can request a chatbot to answer your queries, and it will comply.

Chatbots create new possibilities for entrepreneurs and sellers, allowing them to satisfy customers easily and swiftly. Chatbots feature artificial intelligence that is highly customizable. Without them, companies would have a hard time providing 24/7 support.

Voice-Activation

You no longer need to log into your system and type your queries in the search engine when you can do the same using your smartphone. Online assistants like Cortana, Siri, and Google Assistant are always at your service.

Just go to your phone settings and activate voice search, and you can inquire about anything from your phone assistant. Voice-activated search is by no means a recent trend. Several Linux and Microsoft OS versions had built-in voice assistants launched years ago.

Website

You can use digital marketing to promote your business through a business website. Your business website will help the audience find your business anywhere in the world. Using efficient business promotion means such as digital marketing creates more possibilities.

Ensure your business has an online presence and use online tools such as SEO and PPC to promote it to the world. It’s all about finding the right audience to convert into customers. None of this would have been possible without digital marketing.

Blog Content

Promotion and marketing through content is a valuable way of increasing online traffic to your website. Uploading fresh content on a weekly or monthly basis will help. You can audit old content by identifying areas where it needs adjustments.

Updating the blog section on your website is another way of driving more online traffic to the website. Blogs are popular and attract more traffic if the content is catchy, engaging, and contains authentic information. Regularly amass your website with fresh content and blogs to make it more attractive for readers.

Visual Content

Advertising your business using visual content can work wonders for your business. Visual content is eye-catching and appealing to users. Sometimes, it attracts twice or thrice as many users as composed content.

Prepare and upload informative videos about your business and services to ensure higher conversion rates. It will also add more authenticity to your business. Digital marketing is changing concepts and proving its worthiness effectively. It will continue to expand and bring more valuable and innovative concepts to its users through its versatility.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Search engine optimization (SEO) is a powerful tool that helps entrepreneurs promote their businesses to the world through the internet. Using SEO will bring a fast response to your business and make it reach a much wider audience.

It is a tool that has shown remarkable resilience for many years despite several changes in Google’s algorithms. It is said that Google has made nearly 6000 changes to its algorithms since 2010, and the trend will likely continue. Surprisingly, SEO has proven its worth all these years and continues to do so.

This longevity makes it one of the more reliable and lasting methods in digital marketing. Does this mean that the SEO will remain as relevant in the future as now? Only time will tell, but keeping its track record in mind, it will survive and do better in the future.

SEO emerged early in the invention of search engines but fulfilled only basic tasks. Today’s SEO is leaps and bounds ahead of its humble beginning and will likely continue to improve with time. SEO has helped startups and growing businesses and will continue for some time. Though some believe Search Engine Optimization is fading as a marketing tool, it is still relevant. 

Here are four reasons Search Engine Optimization is here to stay.

SEO is Evolving

SEO has been changing consistently and will continue this pattern. What worked for sites five years ago may not work today. This change doesn’t mean that SEO is dying; it just means it doesn’t work as it used to. Today’s SEO is as effective as it was six years ago, with some differences. Google searches now work differently than SEOs must adopt.

The Google algorithm loves brands and expects them to be organic. This branding is why content is so crucial for SEO. Paid promotions still work, but SEO wonders for websites when combined with content that boasts quality and pertinence.

Innovation through Position Zero

As discussed, SEO is growing more innovative with every Google revision. Position Zero is the first result that comes up in an organic search. Most people using a search engine will enter the site of the Position Zero (P0) result. The results also include answers outside the site.

Readers can read these answers without having to click on a link. These snippets are displayed just above the organic SERP results. It is recommended to keep your content short, use bullet points to write it, and make it more readable with the help of charts, videos, tables, and images.

SEO is Adaptable

One of the reasons SEO is still around and doing great is that it is adaptable. You can incorporate or combine changes with other tools, which will still work best. Today’s customers are challenged to convince through traditional marketing such as emails, paid ads, and cold calls.

That is where businesses use SEO to make their business presence felt in that demography. SEO works like inbound marketing, attracting clients rather than reaching them through sales tactics.

Interestingly, SEO experts can attract more customers using innovative strategies such as long-tail keywords and potentially draw a large audience. This type of keyword works well when there is a need to attract a specific audience. In addition, comparing brand A with B and inserting keywords as questions also bring fruitful results and position you well against your competitors.

SEO Diverts Traffic to Your Site

Driving traffic to a site is not easy. SEO teams work day and night to drive more traffic to your site using various means. Despite several changes in the past few years, SEO strategists are developing efficient strategies for diverting traffic to sites.

They use innovative algorithms and content useful when crawlers go through the site. Quality sites get indexed fast and are more likely to get ranked above others in queries. It is a race between which site ranks higher, and SEO experts know how to bring yours to the first page. Site ranking works gradually, so you might not see yours on the page overnight.

Stuffing random keywords and creating low-quality content will not work. An SEO expert will tell you that quality content still dominates if it is coupled with searchable keywords. Search Engine Optimization will be relevant for years because of adaptability and scalability.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Reviewed By: Brittany McMillen

Brittany McMillen

Brittany McMillen is a seasoned Marketing Manager with a sharp eye for strategy and storytelling. With a background in digital marketing, brand development, and customer engagement, she brings a results-driven mindset to every project. Brittany specializes in crafting compelling content and optimizing user experiences that convert. When she’s not reviewing content, she’s exploring the latest marketing trends or championing small business success.

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Performing efficiently in a codependent environment is a trademark of successful organizations. That means once some portion of your company needs to function in a flat structure, assets are shared, and associates report to different managers. This is the matrix organizational structure.

Setting up a matrix organizational structure could help your company accomplish goals like relieving pressure or creating silos of internal resources. It could catalyze working collectively across the department to attain organizational-wide objectives, like maximizing client segment income and distribution channels and preserving functional excellence.

But a matrix organizational structure will not work just because you set it up. Too frequently, organizational structures fail before they get off the ground because companies need more foundation to support the flat structure.

A business with a matrix organizational structure must be reinforced by solid interpersonal relationships and exact decision-making procedures to succeed. Here is how a company could lay the basis to provide your matrix organizational structure, providing an opportunity for success.

Make Sure Your Senior Leaders Are Aligned

Your senior and professional leaders team is not essentially part of your matrix. Still, they want to set a sample example for all other organizations by modeling what it looks like to collaborate and work together.

Noticeable combined leadership is crucial, and your experienced team has to rule by example, displaying how they connect arms toward an expected end. After all, if your experienced leaders cannot play pleasant, how can you think the organization can communicate or collaborate effectively?

Clearly Define Roles and Stick with Those Definitions

The more precise you can bring to people’s responsibilities, roles, and responsibilities, the more similar people will achieve the performance level you imagine. The continuity role is also significant, so avoid tempting to transform things up at the initial sign of trouble.

Remember that people want time in reposting and roles to develop confidence and build skills to perform well in a matrix environment.

Stop Assuming the Worst

A medium of environment relies on trust. So, you have to encourage trust in benevolent intent. Rather than assuming associates are out to weaken each other, your culture must support respect, honest care for each other’s agendas, and positive regard for others.

Building this sort of culture could be relaxed, said that one. But it initiates at the top, with owners displaying how they work instead of against others to get the job done.

Expect Conflict; Don’t Avoid It

Resource allocation, conflicts over priorities, and view differences come along the matrix territory. And your company has to learn how to achieve it healthily. It is significant for everybody to feel comfortable stating dissenting opinions.

But in the last hour of the day, people want to clearly understand the policymaking procedure and their role in that procedure. In other words, they must understand when a choice is theirs to make and when it isn’t.

Understand the Whole

The matrix structure could widen your understanding and perspective. It is significant for the people working and putting efforts into the matrix to see the broader landscape of all that is happening at their organization. Once they do, they can stand in their colleagues’ shoes and see from others’ perspectives.

Seeing the vast image also helps people better understand whom they want to share information with and who must be involved in choices. Once people know how their zone impacts other zones in the system and vice versa, the parts work more productively and successfully than they would have alone.

Learn From Experiences

Companies that make the matrix work spend great time reflecting, querying, and inquiring about why things failed. Your company wants to provide the people involved in the matrix the freedom and space to examine their collective and individual experiences. And the flexibility to retool when mandatory to put what they have learners to work.

Conclusion

An effective organizational structure takes effort and promises to succeed. But it could deliver significant advantages for your company, not the minimum of which is getting everybody aligned and working together to move your organization forward.

Suppose you invest time to ensure your organization has what it takes to support a matrix. In that case, you will be rewarded with an organization where people have each other’s back and effectively work together for the common good.

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.

Business planning is necessary to ensure your company’s solvency and know whether it is profitable. In uncertain and dynamic markets, simple planning is essential, which shows what you want and can achieve. You can do this with the Excel tool that is presented here.

Business Planning and Financial Planning

Strategizing sales and costs and achieving profitability are fundamental responsibilities in effective management. The imperative lies in securing liquidity while gauging your company’s profitability and individual business sectors. Given the dynamic and unpredictable nature of the future, adapting to evolving scenarios becomes paramount. The foundation for this adaptability is built upon the historical trajectory of business areas and informed assumptions about their prospective development.

That is why planning is sensible and essential. The business must carry it out for the company, which is legally independent and therefore must be accountable to owners about economic success. In addition, it must fulfill its tax and other legal obligations for accounting and proof of success.

A company’s management wants to see what contributes to economic success and in what form. For this reason, sales and costs are not considered across the board but divided and analyzed. Depending on the industry, type of company, size, and performance, various issues are considered in the planning.

Which Business Units and Planning Units are There?

The circumstances and areas where you plan sales, costs, payments, and profits depend on your area of responsibility and tasks. What can and must you arrange, design, change, improve, manage? Here are some examples of planning units:

Products and services

It provides a diverse array of products and services. With a strategic focus, the management is actively seeking insights into the profitability of each service. This evaluation informs decisions on promoting lucrative offerings, exploring expansion opportunities, and assessing the viability of phasing out less profitable ones.

Branches

The company has several branches. The management wants to know how successful the individual departments are, where to invest, and which to optimize and close.

Business areas, business units, and profit centers

A large company has several business units, business units, or profit centers. The management wants to recognize their successes to derive the company’s goals and strategies.

You can use the Excel tool from this manual section for differentiated but manageable planning for your company and individual product groups, branches, or business areas. Structure and functionality are explained step by step so you can start planning immediately.

Excel Tool with Menu and Overview of the Partial Plans

The Excel tool first differentiates the following planning areas or sub-plans for a company, its product groups, branches, or business areas:

• Sales
• Costs
• Liquidity
• Operating profit

You can plan sales and direct material costs as assignable direct costs for up to twelve different planning units. Planning units include individual products or services, product groups or segments, branches, or business areas. These planning units are product groups in the Excel tool.

The gross profit for each planning unit is calculated from sales and material costs.

All other costs for the company are considered and planned. Personnel, insurance, fleet, operating, financing, and other expenses incurred across the board.

Success planning results from the sales and gross profit for the individual planning units and the overarching costs. It includes liquidity planning. On the one hand, the company’s solvency is monitored, and on the other hand, the necessary capital requirements are determined for budget planning.

In addition, the operating result, the company’s profit, is determined in the profit and profit planning. Additional costs, depreciation, and taxes are included.

Considered Planning Period and Time Grid

The Excel tool was designed for six years. This planning period is structured as follows:

Development so far

The actual sales values and monthly costs are recorded for the past three years. The starting point is the current year, from which three years are considered: t-3, t-2, t-1.

Current underlying

The mean value is calculated from these actual values from the past three years. It means value for sales and costs are the basis for future planning.

Future development

Future development is planned based on the current underlying. The plotted values can result from assumptions about how sales and costs can develop and how targets (target values) can express themselves. The planning units for the future three years are:

• For the current planning year (t + 1): months
• For the coming planning year (t + 2): quarters
• For the following planning year (t + 3): full year

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.