you are correct in saying my point makes no sense to you if that is what you thought i was talking about. No risk wasn't even the topic. It's what will add to your bank accounts. Merely buying assets won't pay the electric bill. Pay your car insurance. My point is your "BANK account doesn't get any bigger buying assets alone. I have 3 marlin 30-30 rifles I bought 15-20 years ago. I view them as an asset since 175 bucks was the most I paid for the 3. Been offered 900-1000 for any of the 3. BUT none of them contributed to my bank accounts at any point they been in my safe . SELLING them is the only way my bottom line will increase. Much the way your 401 k that is sitting there and someone else is getting rich off of it trading the stocks. Until you cash out you gain nothing. IF you do get dispersments you pay taxes . But the amount is another 5 page thread..

The link below is long but it covers many areas of who invests in the market, who does not and the reasons why.
The reasons shared above are involved for sure but there are many other factors impacting why there is a reluctance to invest current funds into long term growth assets. Notice that many of the Gen Z group at this time don't plan to invest in market assets at all. There could be some real issues with longevity in the future with people living longer, less SSI, Medicare and limited assets to turn into living expenses.
Planning for retirement is like planning how to spend money while one is actively working. The funds saved along with SSI, pensions etc. are like an employer offering you wages. One needs to invest to have that employer working with you after you quite your active working career or careers. The good news for many is with fewer births, and working to eliminate undocumented workers, the service economy we have today may well provide part time work for millions well into their 70s and beyond.
https://www.philadelphiafed.org/-/m...cans-Dont-Invest-in-the-Stock-Market.pdf
Bryce

Again... it makes no sense. No, of course your bank account won't "grow" unless you sell the equities and transfer the money from your brokerage to your bank. Which takes 2 clicks of a mouse. If risk is not the issue, you're saying it makes more sense to lose out on a potential 40% gain from an ETF like QQQ that tracks the Nasdaq 100.... in exchange for a guaranteed 5% return from a CD...... because...... why exactly?

After one year I can sell those shares, take my $7900, and reinvest the original 20k just like you can take your $1000 and reinvest the initial 20k. But, I am pretty sure my $7900 will go further towards paying my electric bill and car insurance than your $1000 will.....

And if you honestly think that "someone else is getting rich off of it trading the stocks" in my 401K that I OWN, then you really simply do not understand how the market works.....

Not theoretical last year I put 13, 4xx in nividia today its 25,586.15 at close. So up 12,3140 in little over a year. Thats just the account with my largest stake in nividia. Only 120.xx share but I have more in dif6 accounts.
Yes it goes up and down was up more yesterday. Also have many others im up on all of them way above that CD.

But I have a longer time line and risk tolerance though.

In the last year it shows
Return of
+23.46% combined for my fidelity acounts. Im sure some did better some did worse. Next time I look i may be down 50% . I will be happier than seeing it go up i will buy more.



I can live with a few down years without loosing sleep. Infact I prefer the down years since I never stop buying and love buying on sale.
I have stocks and etfs that have gone up In value and pay more than those cds. Jepq pays monthly and has been about 10% i bout during the last dip and have reinvested the pay out. Just checked im up 19.18% on it.

I dont have a life changing amount invested in any single holding. But mu stocks have drastically larger returns over time than the cash I have sitting in money market accounts waiting for the next dip or other investment opportunity.

Nothing wrong with playing it safe especially when retired. But cds have not been keeping up with real inflation .

Personally I would keep a few years worth of expences in ladders cds and bonds along with some dividends paying investments and put the rest in growth for larger returns. Why so you have enough cash to ride out down markets and are not forced to sell at the bottom becuse you need funds.

To me its not an all in one way approach but layered using different tools for different jobs.

No different than pulling from a tax deferred, 4p1 or irs as well as a roth in the same year to keep income in a favorable amount for tax purposes and health b insurance cost.