Why you dont use a bank for your IRA?

Last week we did a video on how your retirement is insured and asked the question, why don’t you want to have your IRA at your local bank or any bank for that matter?

Dustin tim its financial advisor with jazze wealth how’s it going today well last week we did a video on how your retirement investments are insured and depending on where you have that account or what type of account it is depends on the type of insurance that backs you up well one of the questions i asked along the way was why don’t you want your retirement

Account to be at a bank maybe it’s a roth or traditional ira whatever it may be why don’t you want to have investments at a local bank or the bank that’s you know down the road the people you do business with with your checking account well there was a lot of great guesses actually and some of them had to do with being fiduciaries others being sold products and

While those do make a lot of sense there’s one that’s even more important than that and i ranked it number one because this one actually affects your future dollars and you know once the future comes you can’t go back in time and get that money back so i really wanted to focus on this one most important reason that you cannot have your ira at a bank all right enough

With the stalling let’s get to it so the reason why you don’t want to have your ira at a bank is primarily exactly what the bank is there for right think about it when you go to a bank what’s the building look like it looks like this really solid trustworthy building the lettering that they use on the wall is very clean and clear they never used fancy scripty

Kind of writing they want it to look solid trustworthy dependable right reliable all of that so when you walk into the bank you see gates you see like security cameras a very very nicely laid out place to where you feel like your money’s secured you notice how you can always see the safe in the background even if that’s not the real one it’s because they want

You to feel like your money is secure at this place and that there are no potential for volatility events in your money and that’s totally fair that’s what banks are there for they want you to trust that they can handle your money and everything will be stable well when it comes to investments they take that same approach they say well we don’t want to anything

Aggressive with your ira or your investments we want safety and stability and so they will push cds short-term investments that have to do with bonds anything interest rate interest rate sensitive because that’s stable that’s safety that’s secure and the problem with that is well there’s really no problem with that if that’s what you want to invest in but the

Problem with most of you is when you go into the bank and you say i’m thinking about saving for retirement you are then put into these products which will always lag behind the performance of the market and not just by a little bit a lot see when you’re young you want to take the risk you want the growth if the stock market is higher you want to be higher there

With it as well actually we just posted our performance on our website to show every one of our portfolios how have they performed and more interestingly than that how would they perform how are they positioned to perform if the markets go higher we actually have portfolios that are designed to beat the market and have done that we have portfolios that will be

More conservative like a bank so we give our customers the opportunity to sort of choose how fast do they want to really go stay tuned for more videos on that one now if you’re young and you choose investments that are too safe and to secure you might see two three four percent a year on average maybe even less that’s not gonna cut it that’s not gonna get you to

Your goal that’s not gonna grow your account in the good years now in the bad years that might be great right you said well i made 2% but the market went down but in reality you’re not getting that growth that you need so that’s the answer if you have your ira at a bank double-check the investments that are in there i can’t tell you how many people have called

And said dustin i gotta wait for certain cds to expire or i’ve got this special ira and it’s locked up forever but i’m only getting one point two percent on it that’s ridiculous you can’t do that well hey take a moment check out our website go to the services tab and select portfolios you’ll actually see a detailed description of all of our portfolios as well

As their performance so you know if you shift to jazz and you want to be aggressive well here’s what you can choose from if you want to be conservative and kind of outpace maybe the bank accounts get a little bit better interest rate well you’ll know what our portfolios have to offer there as well thanks so much for watching and we’ll hope to talk to you soon

Transcribed from video
Why you don't use a bank for your IRA? By Jazz Wealth Managers