One of the most frequent questions I get from clients—whether they’re in Miami, Orlando, or Naples—is this:
“Should I be actively managing my investments, or is it better to take a passive approach?”

The answer, like many things in wealth management, isn’t one-size-fits-all. Both active and passive investing have their strengths, weaknesses, and ideal scenarios. As someone who has worked closely with families and individuals across Florida through every market cycle imaginable, I can tell you confidently: the right approach is the one that aligns with your goals, risk tolerance, time horizon, and personal engagement with your financial plan.

At Manna Wealth Management, our role is to help clients understand these options and build a balanced strategy that supports their long-term wealth.

Let’s break down the difference between active and passive investing, and help you determine which approach may be right for you—or whether a hybrid strategy might be even better.

What Is Active Investing?

Active investing is a hands-on approach where the goal is to outperform the market. This strategy involves actively buying and selling stocks, bonds, or other assets based on research, forecasting, and analysis. Active fund managers—or individual investors—attempt to capitalize on short-term price fluctuations and market trends.

Key Characteristics:

• Frequent trading
• Market timing strategies
• Deep fundamental and technical analysis
• Goal: beat benchmark indexes (like the S&P 500)

Florida Example:

A physician in Fort Lauderdale I work with had a strong interest in biotech stocks. He preferred an active strategy where he could capitalize on specific trends, like FDA approvals or earnings announcements. We built an actively managed portion of his portfolio that complemented his industry knowledge—while balancing the rest of his wealth with more diversified, long-term strategies.

What Is Passive Investing?

Passive investing, on the other hand, involves building a portfolio designed to mirror the performance of a specific index, like the S&P 500, Nasdaq, or Russell 2000. Instead of trying to beat the market, passive investors aim to match it, minimizing trading and fees in the process.

Key Characteristics:

• Buy-and-hold approach
• Lower costs and minimal turnover
• Index fund or ETF-based investing
• Goal: long-term, steady growth with fewer fluctuations

Florida Example:

A couple in Sarasota nearing retirement wanted stability and predictability. They didn’t want to worry about market timing or watching the news every day. We helped them allocate a significant portion of their assets into low-cost ETFs that track major indices—giving them broad exposure and reduced risk.

The Pros and Cons of Each Strategy

Pros of Active Investing:

• Opportunity to outperform the market
• Flexibility to respond to market volatility
• Tailored to individual sectors or themes (e.g., healthcare, energy, emerging markets)
• Can take advantage of inefficiencies in the market

Cons of Active Investing:

• Higher fees (fund manager costs, transaction fees)
• Tax inefficiency due to frequent trading
• Performance inconsistency—most managers don’t beat the market over time

Pros of Passive Investing:

• Lower costs and expense ratios
• Greater tax efficiency
• Long-term reliability, especially in bull markets
• Less emotional involvement for the investor

Cons of Passive Investing:

• No downside protection in bear markets
• No opportunity to outperform the market
• Less flexibility in reacting to global or sector-specific events

A Hybrid Approach: The Best of Both Worlds?

Here’s where I believe experience and insight come in. Many clients I work with benefit from a hybrid strategy—blending both active and passive investments based on their unique situation.

Think of it like this:

• Use passive investments for your core holdings (broad-market ETFs, retirement accounts, long-term funds)
• Use active investments for satellite holdings (sector-specific strategies, alternative assets, tactical plays)

For example, a client in Tampa might hold a core of low-cost S&P 500 ETFs in their retirement account but choose to actively invest a portion of their taxable brokerage account in dividend stocks or real estate investment trusts (REITs) based on income needs.

This core-satellite model allows you to benefit from the stability and efficiency of passive investing while still having room to pursue opportunities through active management.

How Cryptocurrency Fits Into the Conversation

Another question I often receive—especially from younger investors across Florida—is: “How does crypto fit into all of this?”

Cryptocurrency can be considered a form of active investing, given its volatility and speculative nature. However, when used appropriately, it can also be a small part of a diversified, passive-style long-term portfolio.

At Manna Wealth Management, we offer cryptocurrency advisory services for clients who want to responsibly incorporate digital assets into their investment mix. Whether through self-directed IRAs or dedicated crypto funds, we help clients understand the risk, regulation, and reward potential of this evolving asset class.

Crypto isn’t for everyone—but for the right client, and with proper allocation, it can play a strategic role.

What Should You Consider When Choosing a Strategy?

As your advisor, my role is not to push you toward active or passive investing—but to help you build a plan that reflects your values and your vision for the future.

Here are a few questions I walk clients through when making this decision:

• How involved do you want to be in your investments?
  If you enjoy reading market reports, tracking stocks, and reacting to market events, active investing may appeal to you. If you prefer a “set it and forget it” approach, passive strategies offer peace of mind.
• What’s your risk tolerance?
  Active investing may lead to higher returns—but also higher volatility. Passive strategies offer steadier growth with fewer ups and downs.
• Are you focused on short-term gains or long-term growth?
  Active strategies can target quick wins but are often riskier. Passive investing is better suited for long-term goals like retirement.
• How important are costs and tax efficiency?
  Fees matter. Over time, a 1% difference in annual costs can significantly reduce your returns. Passive funds are typically more cost-effective.
• Do you want exposure to specific sectors or strategies?
  Active management allows for tailored investment in emerging sectors, themes, or market conditions.

The Florida Factor

Living in Florida also brings its own unique set of financial considerations. With no state income tax, Florida residents are in a great position to grow wealth faster—but must still plan for federal taxes, real estate trends, and the rising cost of healthcare.

Many of my Florida-based clients benefit from blending tax-efficient passive strategies in their retirement accounts with more actively managed accounts in their taxable portfolios.

Final Thoughts: It’s Not About Beating the Market—It’s About Meeting Your Goals

Too often, investing becomes a competition to “beat the market.” But real wealth isn’t about performance alone. It’s about freedom. It’s about confidence. It’s about knowing that your money is aligned with your life.

Whether you lean toward an active, passive, or blended strategy, what matters most is that you have a plan—and someone to help you stick to it.

At Manna Wealth Management, we specialize in creating custom investment strategies that reflect your unique needs. I work closely with each client to ensure your investments support the broader goals of your wealth plan—whether that’s retiring early, supporting your children, or creating generational wealth.

If you’re unsure which investing style is right for you, I encourage you to reach out through my bio or schedule a consultation on our contact page.

Let’s work together to create a portfolio—and a future—you can believe in.