When I Learned These Ten Things, I Pulled My Money Out of the Bank
If you care about your money, you’ll do it as well.
I realized that putting your money in the bank is not the place to invest money. The place to invest money is the brokerage and, through the brokerage, also invest in the stock market. Taking money out of the bank and investing in a brokerage can bring significant gains.
I have at least ten reasons for you to take the money out of the bank and that guarantee that this is the best choice:
1. Banks will not provide you with an investment specialist. Your manager is not an investment specialist. He specializes in taking care of your customer service, and his primary function at the bank is to offer products from his own company. Many of these products do not pay well, and some are rubbish. Taking your money out of the bank and investing it in a brokerage firm can bring greater profitability.
2. When you open an account at a brokerage firm, you will automatically have an independent investment agent to help you. The independent investment agent is a professional capable of evaluating all the applications available on the market and suggesting the best ones for your profile, including investments in the Stock Exchange.
3. A stockbroker has many products classified as fixed income — for money that must be protected — and variable income — for cash that may be exposed to risk and originated in different banks and financial institutions. In the bank, only bank products exist.
4. If you want to invest in the stock exchange through the bank, you will only have access to equity investment funds. Possibly, management fees will be high. Bank brokerages, through which you could invest in stocks, do not usually have the same service as an independent brokerage.
5. Only investments in stocks and their derivatives provide the type of income capable of delivering a good return on your money in a time of low interest.
6. In the bank, the diversification of investments is very limited. On the stock exchange, you can invest in stocks, COE (Structured Operations Certificates), ETF (Index Funds), and stock funds of various entities, including foreign ones.
7. The bank will not provide you with trading platforms on the exchange. Take the test: ask which graphical trading platform he can offer you. It is quite possible that he does not even know what it is. And even if you know, you won’t be able to provide any.
8. Even the most conservative investments, such as Treasury Direct, ideal for protecting the money you’ve already earned on the stock exchange, have prohibitive bank fees. At a stockbroker, the custody fee for public securities is usually zero. Reason: it is a way of attracting customers who, little by little, will feel more comfortable with the stock exchange and will see that it is not a seven-headed beast.
9. Interest rates are getting lower. They may even rise in the medium term, but the tendency, in the distant future, is for them to fall to the values of developed countries. In this scenario, only the stock exchange and derivative applications provide satisfactory remuneration. And, for now, only independent brokerages are a satisfactory channel for the stock market.
10. Finally, starting to invest in the stock market or simply opting for a stockbroker, even for more conservative investments, is taking control of your financial life and making choices that can result in your financial independence.
I hope this will convince you not to bury your money in banks. I know you won’t just let the bankers use your hard-earned cash and use it to make your money work for you.
