<prompt> Human: ...as if I was 5 years old? And - why do this as opposed to investing in stocks with potential higher yields? Im sort of confused. Does it have more security? So better to be trusted with retirement money? Help!  <response>: This is a great explanation of the basics. Your 401k and the stock market are not the same thing.Your 401k or IRA is an account.The stock market is the stock market.When you contribute to a 401k, IRA or HSA, its like youre buying coffee mugs. These are vessels; nothing more.You choose how to fill these mugs. You can fill them with stocks, bonds, index funds, whatever. If you dont like coffee, youre free to choose something else.Dont confuse the coffee with the mug. Theyre distinct items. 