Here is something I read recently in a financial planning publication that has stuck in my mind:
"The greatest risk is allocating a portfolio in such a way that it avoids fluctuation but guarantees a return so low it assures the clients money will not last."
Lets spell this out. The money you are saving, that is money that is going to be spent at some point. To make sure you always have enough money, you need to invest it in a way that your account grows by more than what you take out. One of the strategies that has worked in the past is to put good a portion of your money in stocks. Owning stocks can be scary for some people because they don't like to loose money. However, over the last 84 years, stocks made money in 70% of them. The number of years where stocks lost money is 30%. Those are pretty good odds in your favor.
Investing is one of the great opportunities for all people in our society. Its open to everyone and it is a way for people to rise above their current circumstances, better themselves and grow wealth.
The question is what are you going to do with your money? Are you going to be so scared that you keep all your money in cash and CD's that earn a pittance and forces you to set your standards low. Or, are you going to take advantage this great opportunity to grow the amount of money you have in order to live and do what you want.
There are ways to invest your money that limit risk but still enable you to grow your money at rates better than CD's. Financial advisors, like myself, can help you figure out an investment strategy that meets your needs and goals.
