How Much Should You Have in the Stock Market?

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The Motley Fool

Investing, Business

4.3 • 3.1K Ratings

🗓️ 7 March 2026

⏱️ 20 minutes

🔗️ Recording | iTunes | RSS

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Summary

One of the biggest determinants of your future net worth will be your asset allocation – how you apportion your portfolio to cash, bonds, and stocks (and the types of stocks you choose). In Month 3 of our 2026 Financial Planning Challenge, Amanda Kish joins host Robert Brokamp to discuss:-Risk capacity vs. risk tolerance-How factors such as your job and your past behavior could influence your portfolio-Biases that may result in sub-optimal decisions-Broad allocation guidance to consider-Recommended tools for tracking and analyzing your portfolioHost: Robert Brokamp, CFP®Guest: Amanda Kish, CFP®, CFAEngineer: Bart Shannon Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement.We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode.Learn more about your ad choices. Visit ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠megaphone.fm/adchoices Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	How much should you have in and out of the stock market? Yep, we're talking asset allocation
0:09.3	on this Saturday personal finance edition of Motley Full Money.
0:28.3	I'm Robert Brokamp, and it's the first Saturday of the month, which means it's time for the next installment of our 2026 Financial Planning Challenge.
0:36.1	Because it's such an important topic, we're going to skip the headlines this week and devote more time to discussing what to consider when apportioning your portfolio.
0:37.9	So, here we go.
0:41.8	It's month three of a year well-planned.
0:44.7	Our 26 Financial Planning Challenge at the previous two months,
0:48.2	we covered coming up with systems to monitor your spending and your net worth.
0:51.1	This month, we're moving on to your portfolio.
0:55.4	And how spicy it should be, given your circumstances and tolerances.
0:59.9	And joining me to talk about it is certified financial planner and chartered financial analyst Amanda Kish. Amanda, welcome back. Thank you so much. I'm so glad to be back.
1:04.2	The purpose of this discussion is to help listeners to determine the right amount to have in the
1:08.3	stock market, basically, and maybe the amount to keep out as well as what type of stocks to consider.
1:13.5	And as people might suspect, we're going to talk about the term risk tolerance.
1:17.4	But we're actually going to start with something that might be more important,
1:21.0	and that is risk capacity.
1:23.4	So, Amanda, what do we mean by that?
1:25.4	So risk capacity is really the structural side of the risk equation.
1:30.1	It's not about how you feel about volatility.
1:32.5	It's about what your financial life can actually afford to absorb without putting your
1:37.8	short-term, long-term goals at risk.
1:40.1	So one good analogy that I've seen is that risk tolerance is your stomach and risk capacity
	...

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