I was wondering what people thought about the scenario if for any reason/situation, let’s say a person has $0 net worth, no assets or liabilities besides let’s say they have 50k per year of income coming in that’s stable. What would the the most efficient way to prepare for retirement with such limited earning potential and without having a whole career ahead of them to earn and save?
Obviously with such a short time frame, huge equity investments would be risky, and with interest rates so low bonds would be tough to gain ground against inflation.
I’m thinking that the advice of “work as long as you can” will be the go-to, but I feel like there might be better ways to handle the planning aspects of it.
Specifically I’d like to know what everyone thinks as far as buying a house. Assuming that the person described above would qualify for a house, would that be in their best interest so that in 15 years they have a paid off home to live in, or would it be better to try to build a larger nest egg and accept that they will have to rent throughout retirement?
Submitted May 24, 2020 at 08:18PM by jas15890 https://ift.tt/2LWFkY4
