There are all sorts of financial risks. If you keep all of your money in the bank, you risk losing the purchasing power of your money due to inflation. In the short term, investment markets are volatile and during any one year you might experience a gain or loss in value. But, over many years, the stock market has earned an average nine to ten percent annual investment return. While bond funds have earned four to five percent annual returns over the long term. These returns are higher than cash in a savings account and are likely to protect your money from the risks and loss of purchasing power due to inflation.  Over decades, investing regularly in your 401k account is one of the best ways to build wealth for retirement and turn thousands of dollars into hundreds of thousands of dollars or more.