Comment Re: Burn, baby, burn! (Score 1) 63
Or not have a 401(k) and actually invest in productive stuff like building a small business, renovating housing, and holding/renting out for the long term (not just "flipping") etc.
Interesting in real estate, rental properties, small businesses, etc. are (1) extremely risky and (2) require large amounts of money. Stocks are risky but much less risky than starting a business or renting out homes.
What's the failure rate for small businesses? Rental properties face vacancies, bad tenants, and significant costs for taxes, management, and maintenance. Rental property yield are low unless one gets lucky and but undervalued properties.
Most important, a lot of people only have maybe a few tens of thousands of dollars to invest. That's not enough to do a business by oneself.
Stocks have outperformed every type of investment in every decade over the last century, and that's including many crashes and depression/recessions. Of course, putting all of one's stock money on a single company or sector is gambling, but long-term investment in the broader market is a reasonable choice.