I’ve posted Entry #60 to my weekly Beyond Buy-and-Hold column at the Out of Your Rut site. It’s called Risk-Free Stock Investing.
Juicy Excerpt: You are taking on more than one form of risk when you choose investment classes. One is the chance that the investment class will perform poorly. Another is that you might miscalculate how much you need to retire and thus end up in trouble even if all of your investment choices perform precisely how you hoped they would.
Stocks counter this risk because they perform so much better than CDs in the vast majority of return sequences likely to pop up. Investing in stocks exposes you to slightly more of one type of investing risk but investing in CDs exposes you to much more of another type of investing risk. Stocks are in an overall sense the less risky asset class, in my assessment.