Nope. The stock market is one of the best ways to build wealth over the long term, and young people are best positioned to take advantage of that.
There are some caveats, though, which apply to all investors. First, stock market returns aren’t guaranteed, and it’s easy to lose money if you engage in ill-advised practices — like investing in penny stocks, investing with borrowed money or day trading. One of the safest ways to invest in stocks is via a low-fee, broad-market index fund.Also, any money you’ll need within five or so years shouldn’t be in stocks, because you don’t want to have to sell after a temporary downturn.
Instead, you might embrace the simplest stock market investing approach — just buying and holding shares of one or more low-fee, broad-market index funds, such as ones that track the S&P 500 index, or the entire U.S. or world stock market. Your 401 at work might offer an S&P 500 index fund in its menu. Index fund investing can get you to a million dollars or more if you add money regularly and hold for many years.
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