Safety: Only safe from excessive fees, and only in some cases. You can still buy expensive index funds. There are also active funds that
really act like index funds, but without the low price.
They're certainly not safe from market risk. If the index plunges, you'll go along for the ride. (Most active investors will also be there with you.)
- 401k up to the full match amount.
- IRA.
- Pile more on the 401k.
If you've got a really good 401k though with cheap, diversified options (some do exist, amazing
)
and a good match, feel free to shove money into it. But you're usually stuck with the fund options you're given.