Current Events > So... why don't I just invest everything in S&P500 Index?

(+) Yeah! (+)

Googling it and talking with advisors say that it's not smart to invest in just the S&P500, since it won't have a nice blended mix of stocks and bonds. But S&P500 index was always better than a targeted retirement date mutual fund, in both how much they lose during a recession and how much they gain outside of it.

So............. what's the real reason?

Diversifying is generally the best option. S&P is one of the safest ways but it wont really grow much at all, especially in a recession.

nothing wrong with only putting money in that tho

Dunno, I've been doing pretty well over the past 10 years dumping most of my retirement into it. When I get close to retirement I'll move it to a more stable fund but until then I'll keep loading up.

nononom0use123 posted...

Diversifying is generally the best option. S&P is one of the safest ways but it wont really grow much at all, especially in a recession.

But nothing else grows in a recession. S&P500 isn't only the safest way, but it's like the best compared to any and all mutual funds. Hell, S&P500 beats my Betterment 90% stocks/10% bonds diversification.

https://www.lazyportfolioetf.com/comparison/robo-advisor-betterment-90-vs-us-stocks/

For comparison.