Motley Fool Money Which Types of Investments Should You Own and Where Should You Own Them
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Apr 4, 2026 
Stephanie Marini, CFP®, a financial planner focused on practical long-term strategies, breaks down index funds, active funds, individual stocks, bonds, and account placement. Short takes on index fund basics, active fund tradeoffs, and how many stocks to hold. Guidance on cash vs bonds, individual bonds vs bond funds, and which assets suit taxable, employer plans, IRAs, and Roths.
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Active Funds Need Ongoing Performance Checks
- Actively managed funds can outperform but require monitoring because higher fees and manager decisions may not justify returns.
- Robert Brokamp recommends checking active fund returns at least annually and comparing after‑tax performance on sites like Morningstar.
Control Taxes And Diversify When Picking Stocks
- If you choose individual stocks, prioritize diversification and tax planning because you control buys, sells, and harvestable losses.
- Stephanie Marini warns many individual investors concentrate in one sector and struggle to pick consistent winners.
Match Cash Reserves To Time Horizon And Job Security
- Keep 3–6 months of emergency cash while working and as you near retirement increase liquid cash to cover 3–5 years of withdrawals.
- Stephanie Marini ties cash needs to timing, job security, and household income stability.