Is the stock market too risky?

 

I was talking to a teacher yesterday and she mentioned that investing in the stock market is too risky. This is true if you are trying to pick a few stocks like GameStop, Tesla, etc. However, when you buy the ENTIRE U.S. stock market, it becomes a lot less risky because there is no way that every company is going to fail. In your 457(b), you can choose VTSAX (Total US Market), and in your 401(k), you can choose US Large Cap. Check out this stock market map to see what you get when you buy the ENTIRE U.S. stock market (which is what I do). The entire stock market can and does crash, however; it will usually return to all time highs within months or a few years. https://finviz.com/map.ashx?t=sec It's only a loss on paper until you sell. Do not panic and sell when the market crashes. It is important for you to keep a long-term perspective. Using a target date fund is an excellent way to invest in a diverse portfolio that automatically adds more bonds as you approach retirement.