this post was submitted on 11 Jun 2023
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Bogleheads advice doesn't apply well to the median wage earner in the US.
Curious why you think that? I am not aware of any real alternative.
I would agree, in the sense that "earn more money" and "restructure the United States to have a more functional welfare system" are better but not really alternatives.
I was thinking in terms of pensions. It is less common these days but some people still do have great pension benefits. SS too can be quite good if one works to age 70. The other direction is defined contribution plans. Especially if contributions are matched it becomes more important to at least get the free money.
It's like telling someone to water their crops while they are experiencing a drought.
I think the hierarchy is
I totally see where you're coming from though. It is definitely advice for what to do once you're not sinking so to speak. It's advice for step 3 of that process. Folks like Dave Ramsey (who really needs to be taken with a grain of salt, lots of grains) are for step 2 (and maybe 1).
Does depend on if one can do savings for the long term. Also probably depends on ones benefit structure which determInes how important that is.
It's more like telling someone to methodically manage their irrigation before, during, and after droughts.
How much do you think the median wage earner makes?