Yes, in most cases. People are living much longer these days than their ancestors did. Consequently, almost everyone will need a reasonably good sum of money to tide him or her over during the lengthening period of retirement. Historically, stocks have returned on average close to 11 percent per year, which is about double what bonds have returned and more than double what bank savings accounts have returned. So many people feel that they have to invest at least something in stocks to carry them through retirement.
Stocks are volatile.
They can rise sharply or fall sharply. On the other hand, if you want to take your dream trip to Hawaii five or 10 years from now, you may want to invest in a conservative stock or mutual fund. There is no guarantee that it will pay for your whole trip, but history's lesson is that stocks return more than other forms of saving or investment over the long period. I'm moving from England next month and would like advice on investing. If you're coming to the United States, you may find it worthwhile to first begin educating yourself about markets and investments by reading widely on online sites, personal finance magazines, books, and the like.