馃攳
Skip Your Bank! These 7 Options Will Make You MUCH More Money. - YouTube
Channel: Wealth Hacker - Jeff Rose
[0]
let's see if this sounds familiar you
[1]
have some money sitting in a savings
[3]
account and is probably making next to
[5]
nothing and you're not really sure what
[7]
to do now you have several options one
[9]
option is you could go to a traditional
[10]
bank like this behind me to stick your
[13]
money in the savings money market
[15]
account chances are they're not going to
[17]
pay you anything if they were paying you
[19]
something that you wouldn't be watching
[20]
this video so today what I want to share
[22]
with you or what are seven alternatives
[25]
to do with your savings besides sticking
[28]
it with a brick-and-mortar bank and I'm
[31]
also going to share with you a crazy
[33]
story of where a client of mine was
[36]
keeping his cash you're not gonna
[39]
believe where he was keeping it and
[40]
you're not gonna believe how much it was
[41]
you're gonna find out all about this in
[43]
today's video check it
[47]
[Music]
[63]
all right so let's go ahead and dive
[65]
into it what options do you have other
[67]
than the traditional brick-and-mortar
[69]
bank well the first option that you have
[71]
which is probably the easiest is some
[74]
sort of online savings some sort of
[76]
online bank now probably five to ten
[79]
years ago it would have been absurd that
[82]
you would have trusted an online bank to
[86]
put your money I mean people just
[87]
couldn't even stand the thought and I
[89]
know there's still a lot of people that
[91]
feel very uncomfortable with the fact of
[93]
doing online baking but the reality is
[95]
like this is the present like this isn't
[98]
the future this is the present and if
[100]
you're not with the times then it's
[102]
probably time to start catching up now
[103]
there are so many different online banks
[106]
now most of them are trustworthy and I
[109]
wouldn't even think twice about it I
[110]
would definitely want to know how long
[113]
the bank has been around and the big
[115]
kicker is are they FDIC insured if they
[119]
don't have the FDIC insurance then you
[120]
don't even want to mess with it now some
[122]
of the banks that I'm more familiar with
[124]
our ally CIT synchrony there are so many
[129]
more online banks today then there were
[133]
a year ago three years ago especially
[135]
five to ten years ago just make sure
[137]
that you do your research now why would
[139]
you want to choose an online bank versus
[142]
a traditional brick-and-mortar now a lot
[144]
of the brick-and-mortar banks offer
[145]
online banking through their apps their
[148]
website so why do you want to mess with
[149]
the online bank well the reality is that
[151]
because they don't have these
[153]
brick-and-mortar locations they don't
[155]
have the overhead they don't have the
[157]
cost to keep the bank going they don't
[159]
have all the employees at a traditional
[162]
brick-and-mortar they don't have the
[162]
real estate they don't have all the
[164]
expenses that go along with that
[165]
so they should be able to pay you a
[167]
higher interest rate that you would get
[170]
at a traditional bank for example I was
[172]
curious to see what does my bank pay on
[175]
their savings account you know if I were
[178]
to go open up a savings account or our
[179]
passbook savings and their savings
[181]
accounts their passbook savings rate
[183]
starts at point zero five percent that
[187]
is correct point zero five percent not
[189]
five percent point zero five percent now
[192]
they will pay you a higher rate as
[194]
you're at
[194]
count rose or as it gets to a higher
[196]
balance but unless you have 50 to
[199]
$100,000 then what they're paying you is
[201]
next to nothing so let's compare this to
[203]
an online bank now I compared a ton of
[206]
different online banks looking at with
[208]
their savings account rates were and I
[210]
found anywhere from point six five as
[212]
high as point eight five is
[214]
traditionally where you're seeing those
[216]
rates and I did see in some cases where
[218]
they are paying more than 1% now I
[220]
understand that 1% is still not a lot of
[223]
money but in a certain interest rate
[225]
environment would you rather get paid 1%
[228]
or a point zero five I mean to me I want
[231]
to make as much money as I can so pay me
[233]
the higher rate all right option number
[234]
two seems a bit old school but it still
[237]
makes a lot of sense for those that are
[239]
interested so where's the option number
[240]
two we're talking about US Treasuries
[243]
correct t-bills now for me this is my
[246]
damie a little bit but I remember as a
[248]
kid like my parents or grandparents
[250]
would buy me like those savings bonds
[251]
you know buy them in twenty five fifty
[253]
one dollar increments and that's would
[254]
be like a birthday gift that is an
[256]
option but you don't have to go and buy
[258]
you know these old tea bills that used
[260]
to get you can actually do this all
[261]
online and you can go to Treasury gov to
[265]
buy these tea bills now typically
[267]
they're going to pay comparable that way
[269]
you're going to see you as CD rates are
[270]
paying maybe a little bit higher there
[272]
little bit longer termed in like a
[274]
one-year CD or two-year CD
[275]
either way it is still another option
[277]
gonna pay you more than that point zero
[279]
five percent then the traditional bank
[281]
is gonna pay you all right option number
[283]
three now stick with me for a minute
[285]
option number three doesn't sound like
[287]
something that you would use for your
[288]
savings account but if you have enough
[291]
in your emergency fund now this is an
[292]
option you could consider but yes it
[294]
does come with a little bit or a lot
[296]
more risk
[297]
so where's option number three option
[298]
number three is buying individual stocks
[301]
but individual stocks that focus on
[303]
dividend now obviously just because the
[305]
stock pays a dividend doesn't mean that
[307]
it won't drop in value like that could
[309]
happen then again if the stock is paying
[311]
a three percent dividend four percent
[313]
dividend or if you're looking at some of
[315]
these limited partnerships that are
[316]
paying seven eight nine ten sometimes
[318]
double digits in dividends then
[320]
obviously that's paying a lot more than
[322]
the point zero five percent or the point
[324]
eight by percent that you find in online
[326]
savings accounts that be
[327]
said this is a lot more risk and this is
[330]
something that I would not put
[331]
short-term money in this is money that I
[334]
would be looking at at least one year
[336]
preferably two to three years where I
[338]
know that I didn't need the money I
[340]
would not be looking at three months six
[343]
months 90 days to put my money into a
[346]
high high paying dividend stock and
[348]
thinking it like that is the right thing
[350]
to do but if you're fine with more risk
[352]
if you're fine with also the potential
[354]
of not just getting the dividend but
[356]
also getting appreciation in the stock
[358]
because you have a long term perspective
[360]
then a high dividend paying stock could
[363]
be a good option so where are you going
[365]
to do this at now you can go to funny
[367]
enough a traditional brokerage account
[370]
or a traditional brick-and-mortar
[371]
brokerage firm to do this or you can go
[374]
to online options and I've talked about
[375]
all these different options on other
[377]
videos so check those out but you have
[379]
each right a like financial even Robin
[381]
Hood which you can buy stocks through
[383]
Robin Hood as well so you have so many
[385]
different options to buy these stocks so
[387]
option number four is a little bit more
[389]
traditional we're talking about what is
[391]
the opposite of stocks bonds now when I
[394]
started in the business as becoming a
[395]
financial adviser it was much more
[397]
common for investors to buy individual
[400]
bonds so people would buy 10-year bonds
[403]
20-year bonds or if you're buying a
[404]
municipal bond sometimes the maturity
[406]
would be up to 30 years but back then
[409]
when interest rates were a lot higher
[411]
people didn't mind locking up their
[413]
money for 20 30 years if they are making
[415]
eight nine percent on their money now
[418]
it's not as attractive but still bonds
[422]
can make sense now most likely you're
[424]
not going to buy individual bonds so
[426]
what are you going to buy so you can buy
[428]
bond mutual funds
[430]
now mutual funds have all their costs
[432]
and you have a shares which you could
[434]
get it just Europe ain't up for
[436]
Commission you don't want to do that and
[438]
if you're not sure about that you can
[439]
watch my other video where I talk about
[441]
the five biggest ripoff to avoid when it
[444]
comes to investing I talk all about a
[446]
shares so if you're not buying mutual
[447]
funds if you're not buying individual
[449]
bonds what are you buying
[450]
so what I would suggest is looking at
[452]
ATF's so you can buy different indexes
[456]
different bond indexes on whatever
[458]
maturity that you're looking for how
[460]
much
[461]
risk that you were comfortable with with
[462]
bonds because what people don't realize
[464]
is that just because it's a bond doesn't
[468]
mean that it's safer than a stock a lot
[470]
of times people think that Oh stocks are
[472]
aggressive risky bonds are safe not
[475]
entirely true for example two different
[478]
ETS that you could buy that are two
[480]
totally different types of bonds are a
[482]
high-yield bond ETF or a municipal bond
[486]
etf so what's the difference a
[488]
high-yield bond is one it's paying a
[491]
higher yield because there's more risk
[493]
involved so this is a typically like a
[496]
corporation or a company that maybe has
[498]
a lot of debt maybe their cash flow
[502]
isn't where it needs to be so they're
[504]
paying a higher interest rate so you're
[506]
gonna get more as an investor standpoint
[508]
you get a higher interest rate because
[510]
there's more risk with that company of
[512]
that company going bankrupt and you
[514]
losing your money on your bond so yes
[516]
it's gonna pay you more but there is
[519]
risk involved compare that to a
[521]
municipal bond and a municipal bond etf
[524]
so a municipal bond is typically issued
[526]
by some sort of state government a city
[530]
a hospital sometimes it's for like roads
[532]
it could be for like new stadiums
[533]
anything to do with typically
[535]
municipalities you know which talent
[537]
city states all that good stuff so with
[539]
these they're traditionally are more
[541]
safer not as much risk but because of
[543]
that you're not going to get as a higher
[546]
return so these are all the different
[547]
things you want to factor in and you
[549]
don't have to buy the individual bonds
[550]
because now you can buy the ETF
[553]
so I know what you're thinking it's F
[554]
these sound great you know option the
[557]
last two options sound fantastic I just
[559]
don't trust myself in picking the right
[562]
stocks the right bond etf so if I don't
[567]
trust myself then what other options do
[569]
I have and that is option number five
[571]
which is a blended portfolio so
[574]
typically now we're looking at something
[576]
like a twenty five percent stock seventy
[579]
five percent bond maybe twenty percent
[581]
stock eighty percent bond and we're
[583]
utilizing ETF to get us this portfolio
[585]
blend but Jeff you just told me that I
[587]
don't have to pick the ETF so how am I
[589]
going to build a blended portfolio when
[592]
I have no idea what I'm doing
[593]
that doesn't really help me so that's
[596]
why we're gonna utilize a platform like
[598]
betterment or a wealthfront so with
[601]
these two companies these two investment
[603]
firms you just choose your investment
[605]
goal so you choose what are you trying
[607]
to accomplish and most importantly what
[609]
is your timeline when do you need this
[612]
money and if you are choosing a timeline
[614]
that is short three years five years
[617]
they're going to automatically place you
[619]
into a blended portfolio that is far
[623]
less in stocks more in bonds so that you
[627]
are taking a lot of the risk off the
[629]
table you need to know this just because
[631]
you have 20% stocks 80% bonds that
[635]
doesn't mean that if we have a market
[637]
correction that you're not going to lose
[638]
money you very well could lose money you
[641]
probably will lose money but by having a
[643]
blended portfolio and having less in the
[644]
market you should see a less drop that
[647]
if you were in individual stocks
[649]
individual bonds so that's why you
[651]
choose that option right before I get to
[653]
the last two I mentioned at the
[655]
beginning in this video about a client
[657]
of mine actually not entirely true this
[659]
is a former client of mine but one of
[661]
the first meetings that we had he let me
[664]
know that he had a certain amount of
[667]
cash that he was keeping in a quote safe
[670]
place and initially he didn't tell me
[671]
how much he had but then as we start
[674]
talking more sort of going through all
[675]
his other investments I come to find it
[678]
come to find out I learned this guy has
[679]
over a hundred and forty thousand
[682]
dollars in cash I'm talking a hundred
[685]
forty thousand dollars in cash like
[686]
rolls and everything in his safe in his
[690]
basement 140 GS in this hay in his safe
[694]
in his basement and I don't remember
[696]
exactly how long he had his cash sitting
[698]
there to me it was just absurd now
[700]
thankfully it was a fireproof safe
[702]
nonetheless he had a hundred forty
[704]
thousand dollars sitting in cashed
[706]
making nothing should've just buried in
[708]
his backyard but I don't know how much
[710]
interest he lost on I didn't want to
[712]
like calculate that but that by far was
[714]
one of the craziest things I've seen
[716]
anybody do with cash so this is not one
[719]
of the options I'm going to talk about
[720]
so this is an option that you do not do
[723]
they'll keep it in the safe do
[724]
hideaway where you don't know where it
[726]
is bad idea all right so let's get down
[729]
to the last two alternatives when it
[731]
comes to traditional bank accounts so
[734]
number six is real estate investment
[737]
trusts otherwise known as REITs now I've
[740]
talked about REITs and investing in real
[741]
estate in other videos actually there's
[743]
a video that I talked about the eight
[744]
different ways that you can invest into
[746]
real estate without actually buying or
[748]
managing any properties so that's a
[750]
video you're gonna want to check out in
[752]
that video I talked about Reese now
[754]
reach our package sold available in many
[758]
different formats so you can buy kind of
[762]
like stocks these are companies that
[764]
they specialize in managing real estate
[766]
properties so you can buy stocks that do
[769]
that you can buy mutual funds that do
[771]
that you can also buy ETF's that buy and
[774]
manage different properties you know
[776]
whether they be there buying individual
[778]
reach or they're tracking some sort of
[779]
real estate index so there are many
[782]
different ways that you can do this now
[784]
you're probably going back to the stocks
[785]
and bonds options that talked about
[787]
earlier where it just gets confusing
[789]
because okay Jeff there are so many
[791]
different options then what do I do
[793]
so I think the most simplest way is
[795]
buying some sort of REIT ETF I think
[798]
that's a very simple way you're going to
[800]
get a decent dividend you're going to
[801]
get access to real estate so that's one
[803]
way now another way that I'm more
[805]
partial to is online real estate
[808]
crowdfunding online real estate
[810]
investing so you have companies like
[812]
fundrise Realty shares rich uncle's
[815]
there are several there and more are
[817]
becoming available now the one that I'm
[819]
more partial to and this could change
[820]
over time but the one that I like right
[822]
now is fund rise so fund rise basically
[825]
what they are is a real estate
[826]
investment trust company this is what
[828]
they do they go out and buy the
[830]
properties they manage the properties
[832]
you just invest the money and they take
[835]
care of the rest now what I like about
[837]
fund rise is that it doesn't take a lot
[839]
to get started you can open an account
[841]
with fund rise with $500 you know a lot
[844]
of mutual funds you have to have a
[845]
minimum of a thousand two thousand
[849]
twenty five hundred some are even higher
[850]
than that so the fact that you can get
[851]
access to real like real real estate
[854]
properties for as little as five hundred
[856]
dollars
[858]
and all you have to do is log on on your
[861]
laptop or your computer at home or even
[862]
your smartphone I mean that's legit all
[865]
right number seven the last option is
[867]
peer to peer lending and I've talked
[869]
about this before so here there are
[871]
options like Lending Club prosper
[873]
now Lending Club is the one yes you can
[876]
go ahead and do a quick google search
[877]
and you can see that Lending Club has
[879]
had some struggles with there is a
[882]
executive team with their CEO that being
[884]
said I've had a Lending Club account now
[887]
for several years I'm try remember
[889]
exactly when I opened it just to be safe
[891]
I'm going to say 2011 is where I open my
[894]
first account currently I have I think
[896]
it's four different accounts with them
[898]
right now opened up a recent newer one
[901]
here recently with $5,000 and I did a
[903]
video where I shared my previous Lending
[906]
Club experience as well as me picking or
[909]
building the portfolio my new portfolio
[911]
in Lending Club so be sure to check out
[912]
that video but peer-to-peer lending is
[914]
allowing you to be the banks so instead
[916]
of going to the traditional bank and
[918]
give putting money in their account and
[921]
having to pay you a small bit of
[923]
interest you're doing the complete role
[925]
reversal and you are becoming the bank
[927]
so now you are lending the money to
[930]
other peers that are borrowing the money
[933]
for different purposes it could be
[935]
consolidating debt paying off credit
[936]
cards could be a business loan could be
[938]
a wedding I mean there are so many
[940]
different reasons obviously people are
[941]
borrowing money now the cool thing is
[943]
that you can actually see what the
[945]
reasonings are like what are they
[946]
borrowing the money for and like the ETS
[950]
I mentioned before whether it be stocks
[951]
or bonds you can be as aggressive or
[953]
conservative as you want with that so it
[956]
really just depends on what your comfort
[958]
level is now I will say that a lot of
[960]
the other options I've talked about I
[961]
mentioned this earlier in the video but
[963]
is worth saying again is that these are
[965]
not 90 day six month one year type
[970]
investments these are not options that
[972]
if you need access to your money right
[975]
now or tomorrow or next week you're not
[978]
going to want to do some of these
[980]
investments because with fund rise for
[982]
example there is a redemption fee
[984]
meaning that your pay some sort of
[985]
transaction charge to get your money
[987]
back with Lending Club yes you can sell
[989]
your notes but it's on the secondary
[990]
market you
[991]
to find a buyer and it could take a few
[993]
weeks to finally sell your notes to get
[995]
your money back so if you are needing
[998]
quick access to your cash you don't want
[1000]
to consider these options but if you
[1002]
already have your emergency fund intact
[1004]
and you want to make more interest
[1006]
that's where these seven alternatives
[1008]
can make a whole heck of a lot of sense
[1010]
alright so that is the seven
[1012]
alternatives to traditional bank
[1013]
accounts I hope that I given you
[1015]
something to consider as you can see
[1017]
there are so many different choices you
[1018]
can do all of them you can do one of
[1020]
them you can do none of them but all I
[1022]
want to share with you is that there are
[1024]
there is more than one way to invest
[1026]
there is more than one way to earn
[1027]
interest on your cash so which option is
[1031]
sounds the most attractive for you let
[1033]
me know in the comments below which
[1034]
option are you going to take advantage
[1037]
of to earn more interest on your money
[1039]
like I said let me know in the comments
[1040]
below appreciate you checking out this
[1042]
video as always this is Jeff rose
[1044]
reminding you that is your money it's
[1046]
your life and only you can make it
[1047]
awesome
[1048]
take care show me the money show me the
[1052]
money
[1053]
gotta give me that money give me that
[1057]
money
Most Recent Videos:
You can go back to the homepage right here: Homepage