Mel Abraham argues that not investing is the greater risk because failing to build investment assets leaves people vulnerable to inflation, large medical costs, underfunded retirement, and outliving their savings. He cites specific figures—$315,000 average medical costs for a couple in retirement and that about 38% of Americans own no stock investments—to support the warning.
$315,000
38% (almost 40%)
Investing isn't risky. Not investing is risky. See, people think investing is dangerous, but here's one guarantee. If you don't invest, you will never build your money machine and you will never have a financial future. What's really dangerous is inflation, is medical bills. Let's say a couple on average during retirement years will pay $315,000 in medical. If you haven't built that, how are you going to pay for that? What's dangerous is an underfunded retirement, and what's dangerous is outliving your money. Here's the thing. Almost 40%, 38% of Americans own no stock investments. That tells me that they're not invested. That tells me that they're not in assets that beat inflation. That tells me they're not in assets that are going to grow and build something. And part of it is because they're concerned that it's dangerous, that it's risky and they could lose it all.
