No. of Recommendations: 3
You might be confusing retirement investing with cash management. Overall, the point is valid, any money you definitely plan on spending in the next 5 years needs to be in something safe (money market or CDs).

Retirement investing, if you're 25 and getting started, I wouldn't worry about worry about having 5 years of cash. If you're 55-60 and plan on retiring at 65, then I'd start working on that 5 year set aside.

So at 25, after you have an emergency fund and any planned spending (car, house, etc) in cash, go to the stock market.

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