Your IRA will be affected by the stock market just like any other investment, and although there are many advantages of IRA accounts, you should be aware that they are not risk-free. It's important to remember that you don't have to (and shouldn’t) keep all of your money in stocks. You can choose to invest in a variety of different things, including bonds, real estate, and mutual funds. This will help reduce the risk if the stock market does take a dive at some point.