there's nothing that excites me more
than somebody that's ready to invest
maybe they've listened to a podcast read
a book or watch my YouTube channel and
they're ready to take action it excites
me even more than that when they
actually do take action when they go
someplace somewhere and open their first
investment account but here's the
problem with that is that there are so
many different options and maybe the
option you choose isn't the best for you
so what I'm gonna share with you right
now is a reader question from somebody
that took action and went to go invest
with their local bank and we're going to
talk about is investing with the bank
the best decision the right decision for
you we're gonna answer that and more in
today's video so let's check it
[Music]
now the first thing that you need to
realize if you are going to invest with
the bank a lot of times people do so
because they think that there are some
added protection we've heard of this
thing called FDIC insurance so we think
oh man if our bank money is insured if I
start investing with my bank then I've
got protection there - false no there is
no added protection you're not you have
any guaranteed investments it's not like
if the bank defaults that your money is
insured so don't think that you're
getting added protection or security
that you're getting with the bank so
that doesn't apply here if we're talking
about investing in the stock mortgage
all right so let me go ahead and read
this question which is more like a
comment but you'll see there is a
question so this is what the commoner
had to say I went to TD today to try to
open up the Roth IRA and they were
telling me that a CD woody would be
better because you can get better rates
what I haven't decided yet but I was
wondering if you could help me I'm only
24 years old and trying to expand my
investments first of all let's just give
this reader some props because we've got
a 24 year old that is taking initiative
and investing
I'll give me a pound bud give me a pound
right here give it give it give it so
I'm not sure the question was abundantly
clear so I did respond and my question
was better rates than what and I had to
use a special mode you just make sure I
got my point across so the commenter did
come back and this is what they said so
they were telling me the bank that if I
do a nine month assuming of CD I'll get
one point five nine percent and if I do
a Roth I get point three five percent so
at this point I'm really wondering like
who is he talking to like who is giving
him this advice on whether to do a Roth
or CD because this person has no
business giving investment advice which
one second and I basically responded
with this person has no business helping
you out which I just said
this is one inherent problem if you are
going to invest with the bank you have
to realize like dirt there are two
different things that can happen here
one if the bank doesn't have any sort of
investment channel so they haven't
partnered with an investment firm or
they don't have some sort of brokerage
firm that's separate of the bank then
that Bank is only going to be able to
offer you CDs or a money market or
passbook savings basically all these are
now these are FDIC protected so you have
the FDIC insurance but with that you're
not getting any return see a bank on its
own cannot offer you stocks ETFs mutual
funds they can only offer you banking
products and oftentimes when we start
talking about the Roth IRA we start
thinking in the Roth IRA as an
investment and it's not an investment
it's a retirement account and you can
decide what goes inside that Roth IRA so
if you want to go to an investment firm
and buy stocks and put inside the Roth
IRA you can but if you go to a bank and
you want a Roth IRA and they can only
offer you CDs or a money market then
they can't sell you mutual funds I can't
sell you ETF so that's the only thing
that they have to offer it's kind of
like going to McDonald's and say hey can
I get some orange chicken because I'm
craving some orange chicken and some
fried rice McDonald's doesn't offer that
they can't sell that to you they can't
tell you what they don't have so what it
sounds like in this case to Bank can't
offer them investments but the poor that
just makes no sense to me is that
apparently the person that this
commenter is talking to like doesn't get
that or didn't feel the need to disclose
that or maybe this person to ask the
right questions either way this is not
where you want to go open a Roth IRA and
make one point five nine percent or
point three five percent obviously you
want to put this into something that's
going to grow over the long term now as
I mentioned I had a relationship with a
credit union where people could buy
investments but I was a separate entity
than the
credit union and there are situations
where the bank will have a separate
investment firm at an investment
brokerage that they partnered with that
they can't offer you ETS mutual funds
stocks I want to say that this applies
100% of time but I've seen too often
where these advisors that are working in
a bank or a credit union they operate
solely on Commission so that means that
they are trying to recommend that you
buy something they're going to get paid
once you buy something so what's their
incentive yeah they want to sell you
something and sell you more of it so
they get paid that big fat commission
now like I said that is not 100 percent
of the time but it does happen it
happens a lot so just be careful if
you're going to open an investment
account with your bank or credit union
and that's why personally if I'm going
to invest I want to go to an investment
firm or if I'm confident and brave
enough I'm gonna go online and I'm gonna
open an investment account with
betterment or with wealthfront
or Robin Hood or Emaline finance because
nowadays there are so many online
options that exist that are easy to set
up that you can get set up and invested
in literally at 30 minutes or less I
actually recently just did a m-1 finance
review where I'd never open an account
with m-1 finance I didn't know a lot
about them and I just want to see how
long it took and how hard it was to open
an account and I was able to open an
account and get invested I think it was
like less than 30 minutes and that was
me having no experience with their
platform whatsoever so it is possible to
get started investing without it being a
huge headache and make sure that you're
not listening to advice from somebody in
this case that says oh you're you're
gonna get point three five percent if
you open a Roth IRA it's like what who
are you like don't give investment
advice because you're not qualified I
wonder how many more people out there
have open an investment account or try
to open up an investment account or one
open a Roth IRA with a bank and they
just got a person like this that was
just giving them
horrible advice like this is just not
good I'm curious if that is you if you
have a similar story let me know in the
comments below if you've went to a bank
or credit union and you're trying to get
advice and you talk to somebody that
just didn't know what they were talking
about it had no business talking about
I'm just curious because kids are there
more of you out there we want to make
sure that that's not happen to you
because we want you to hack your wealth
we want you to invest for your future
and make sure that you're putting your
money where it needs to be put alright
y'all I hope you enjoyed this if you
have a question like this that you want
to share with the community and for me
to respond and give a good reply then go
ahead and just comment contact me
wherever you need to do our job
appreciate you Jeff rose reminding you
that's your money it's your life and
only you can make it awesome until next
time peace