If you go to a bank or speak to a financial advisor about investing, most investment salespeople will recommend actively managed mutual funds. Whether you choose to invest in them or not, it’s important to know what they are and how they work. I described them in this video.
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Few people (if any) know their tolerance for risk until they've been tested. Your stock and bond allocation has more to do with emotions than performance. So respect what you might not know about yourself.…