How Much Investment Risk Is Right for You? (Ep. 2)

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How do you start investing when you are worried about making the wrong first move? Before choosing an investment, consider what the money is for, when you may need it, and how much risk you can realistically take. In this episode of Fool Disclosure, Bill Mann and Shelby McFaddin discuss how beginners can start investing based on their goals, time horizon, and financial situation. They explain the difference between risk tolerance, how much risk feels comfortable, and risk capacity, how much risk your circumstances allow you to take. Bill and Shelby also compare active and passive investing, explore diversified index funds and Roth accounts, and discuss how much money someone may need to…