>If you put 100k into a bank account, it will earn nothing and taxes will eat you alive.
Huh? Assuming this is all after-tax money and isn't earning anything, what would you be paying taxes on exactly?
Huh? Assuming this is all after-tax money and isn't earning anything, what would you be paying taxes on exactly?
A bank account is the absolute worst place to park any significant amount of money. The only reason it's better than a mattress is you don't have to worry about the bank catching on fire.
Personally I think a Roth IRA is the better deal from a tax standpoint -- pay taxes on contributions and then you're done. With a long enough time horizon and a little luck those contributions will be dwarfed by earnings, and I would rather pay taxes on the lesser amount.
A savings account earning >=1% interest is a negligible tax burden. What you lose from inflation is far greater than what you pay in taxes. Even so, saying it's "the absolute worst place" to put money is beyond hyperbolic.