Quote:That's where I'm at...I don't trust the stock market...It doesn't take much to make it drop, it fluctuates simply on speculation...It's much harder to bring back up than it is to drop it...The market is also manipulated...

 

That's not really true depending on how you invest, especially the part in bold.  While I somewhat agree that the market is manipulated, it's not solely because of "speculators" but has more to do with The Fed and The Government.

 

Quote:the variation I can handle. the sudden drop and slow return is what bothers me..It would bother me more if a sudden unexpected drop hit after retirement 

 

The market doesn't "drop suddenly" or "unexpectedly" for the most part.  The last major drop occurred between October 2007 and March 2009, and there certainly were many warning signs and indicators.  It took from March 2009 until about March 2013 to recover back to previous highs and is higher today.

 

The key thing to remember is that you are investing over time.  If you had been investing in a 401k mutual fund between October 2007 and now you would be way ahead and way better off than if you just saved in a savings account.  Remember, even if the value falls, if you invest the same amount consistently over time you end up buying more shares at a lower price.  When the market does recover and increases you have more.  It's called Dollar Cost Averaging.  As of matter of fact, you would have probably recovered the same value as early as June 2011.

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