IRA / 401k / mutual fund allow you to spread risk out over multiple areas(diversity)
Buying stock in one company has zero diversity.
Most people don't have the time or knowledge to sit down and look at individual stocks.
So using a mutual fund, 401k or IRA with suggested investments based on risk tolerance helps them to find success or just feel more confident.
The majority of people have no clue what they are invested in thru thier 401k , IRA or mutual funds..... They just hope it all works out.
Retirement plan 101....
Save money , pray it is enough someday to retire.
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