Hammock Investing: Relax and Let Your Money Work

Ever wish you could invest successfully without obsessing over financial news or second-guessing every market move? Enter hammock investing—an approach that encourages you to build a simple, diversified portfolio, then kick back and let time and the market do the heavy lifting.

What Is Hammock Investing?

Hammock investing is a philosophy that blends the simplicity of passive, buy-and-hold investing with the relaxed mindset of someone chilling in a hammock. Popularized by European authors like Yoran Brondsema and Tim Nijsmans in their book "De hangmatbelegger," the strategy calls for putting your money into broad, low-cost index funds or ETFs and then—quite literally—ignoring it for long periods at a time.

How Hammock Investing Works

Go Passive: Skip stock picking and complicated trades. Choose diversified index funds or ETFs that cover the global market.
Set and Forget: Invest consistently, automate contributions if possible, and don't tinker with your investments based on headlines or hot tips.
Ignore the Noise: Don't let media hype or market fluctuations distract you. Review your investments infrequently (such as once a year) to rebalance if needed.
Relax: The core message: The less you worry and trade, the better your results tend to be. Chill out—your investments are working for you.

Why Choose Hammock Investing?

Lower Stress, More Free Time: No daily monitoring, no anxiety about every downturn.
Lower Fees: Passive index funds have minimal costs compared to active management.
Successful Track Record: Historically, most active investors underperform the broad market after fees. Hammock investing leverages the long-term power of the market without the high costs or stress.
Broad Diversification: Reduces the risks associated with betting on individual stocks or sectors.
More "Me" Time: Focus on your life, passions, and time—instead of the stock ticker.

Real-Life Example

"Imagine setting up your investments, then literally kicking back in a hammock and letting your money grow while you pursue hobbies, travel, or just relax. Hammock investing is about building wealth the simple, low-stress way."

Getting Started

Choose one or a few broadly diversified ETFs or index funds.
Set up automatic contributions that fit your budget.
Tune out market noise and trust the process.
Check in on your portfolio occasionally to rebalance if your asset allocation has shifted too far.

Key Takeaway

Hammock investing says you don't have to be a financial expert or spend hours managing your portfolio. By making smart, passive choices and letting your investments do their work, you can grow wealth—and enjoy the peace of mind that comes from knowing you don't have to sweat the small stuff.