Kumsajack wrote: ↑Sat Mar 16, 2024 3:01 pm
- I'm not looking at psychological issues (e.g., ease of early withdrawals, market volatility).
Realistically, that's the whole ball game.
Low earners often can't save much. What they can save, they are apt to be less risk tolerant with than people who have more, especially in a taxable account. A good path forward for low earners is:
*Continuous full employment to ensure robust SS.
*Automated saving in a 401K or 403B to lock away savings for retirement, using a VTI or Target Date fund.
*Tucking some $$ into a Roth, if possible.
*Cash savings at Ally Bank, or bank CD.
Low wage earners just don't have much cushion to withstand bad circumstances and should likely play it safe with cash savings.