18 Most Dangerous Financial Products On The Market #Finance

hi if you’re new to the channel my name is T from Financial tortoise where we learn to SC our well slow and steady the number one most dangerous Financial product in the market one that most of us have in our wallet right now Credit cards the easy to use card that we

can swipe tap or nowadays load onto our phones to make all of our purchases so seamless now I admit I use Credit cards on a daily basis and they do have their benefits easy to use Quick transactions organize my purchases and even additional perks like travel points and lounge

access however do not mistake their ease of use as being benign they can be quite dangerous if not managed well they will bite and their bite doesn’t just hurt they’re venomous so here are a few golden rules to follow when using Credit cards one pay your balance in full

on time every single month no compromises two keep your utilization low don’t spend all Credit available three maximize your Credit card benefits TSA fee reimbursement free door dash pass cash back use them all four keep it simple don’t hold

Credit cards if you’re not getting maximum value cancel them number two most dangerous Financial product on the market High fee checking and Savings account many banks Market High fee premium checking and Savings account highlighting their

additional banking perks and Interest Rates justifying the cost fees have range from $5 to even $25 a month my personal take they’re not necessary we don’t own bank accounts for perks they’re there so we can park our money temporarily while we can figure out what

to do with them that is it to be honest it should actually be the banks that pays us for the privilege of holding our money because they generate so much Profit from them but that is a CashNews.co for another day yes there are ways to weigh these monthly fees if you meet certain

criteria minimum daily balance X number of deposits per month Etc but seriously who has the time to stay on top of all these rules right I say avoid High fee bank accounts these days there are so many good alternative options that offer simple zero fee accounts and talking about a good banking

option let me take a minute to talk to you about today’s CashNews.co partner Sofi and they’re checking in high yeld Savings account account if you’re looking for a new online banking option I highly recommend you check out Sofi not only does Sofi offer very

competitive rates allowing you to earn more for your dollars when you sign up and set up direct deposits you can earn up to $300 additionally with sofa you have access to additional FDIC Insurance up to $2 million but that’s not all this is my personal favorite you pay no

account fees as I mentioned earlier many traditional brick and mor banks are known for their Debts by thousand cut strategy essentially finding ways to charge their customers for every conceivable fee account fee monthly fees Overdraft fees Etc well Sofi makes

things super simple no account fee no Overdraft fee no minimum balance and no pesky monthly fees banking should not be complex you’re a busy individual you shouldn’t spend your precious energy constantly check to see if you’re meeting minimum balance requirements

or hitting a certain number of deposits per month so you can avoid account fees so far with their easy to use user interface competitive rates and straightforward terms can help so if you’ve been on to search for a great online BAS bank make sure to check out Sofi and if you use my special

link sofi.com you’ll also be supporting this channel as well I’ll also have a link in the description below all right with that said let’s get back to the CashNews.co number three most dangerous Financial product let’s start getting to some really dangerous ones now home

Equity lineup Credit AKA HELOC if you own a home with some Equity in it you are a prime target for this product banks are salivating for your business but resist you are a smart individual helck simply is a line of Credit borrowed

against available Equity of your home for example let’s say your home is worth $500,000 and you owe $250,000 on it the bank will come and say hey great news there’s a way to access the other $250,000 Equity that is just sitting right there just give us

a call no don’t call them so many people treat hel loock like an ATM machine hey I want to upgrade my kitchen wait a minute didn’t the bank say I can pull out $100,000 using a helck didn’t they mention it comes with flexible payments it’s a slippery slope that can get you

into trouble very quickly you’re not only tempted to over borrow and over spend the Interest Rates which are most often variable can be devastating additionally you’re unnecessarily risking one of your most valuable Assets your home number four most

dangerous Financial product in the line of homes adjustable rate mortgages AKA arm arms are another one of those products waved around by the financial institution as the greatest things in slice bread hey you have a hard time affording the monthly payments on a fixed mortgage no problem we have

the perfect solution for you let me show you the adjustable rate mortgage checkout is low low monthly payments forget the fact that these only start with low rate during the introductory period and they’ll reset based on the market conditions in a few years what will the interest rate in a

few years well let’s not worry about that now what is important is that we get you into your dream home now the danger at Arms is that your future mortgage payments are so much dependent on future economic conditions yes if the interest rate drops you can re

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance to a lower rate however what happens if your interest rate increases then your mortgage payment goes up personally I like to minimize the impact on external conditions of my

personal Finance if I can help it number five most dangerous Financial product reverse mortgages Target an individual 60 years or older who have homes with high

Equity reverse mortgages are often marketed as a great way to fund one’s retirement especially if you don’t have much saved up by the time you’re at retirement age the banks will say hey don’t you want a comfortable retirement why not convert your home into

a retirement account we can pay you in lump sum or monthly payments whatever you want well how do we get paid we don’t need to get paid until much later when you move seller pass away but no need to worry about that now what we want to focus on is getting our hands on that juicy untap home

Equity I mean help you retire comfortably be very careful with reverse mortgages they might sound enticing on paper but they could create a lot of issues down the line within a lot of ways number six most dangerous Financial product Cash Out refinancing mechanically very similar to

a helck or reverse mortgage just wrapped in a different package Banks Market cash out as another great way to access untapped Equity in your home hey maybe helck sounds a bit risky but what if we were to offer you a simple Cash out re

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance the Interest Rates are dropping so this is a great time to reFinance

your mortgage to a lower rate but do you know what else is great if you can get some cash out of that deal wouldn’t it be nice to get an extra $100,000 or $200,000 in your bank account right now imagine all the things that you could do with that money not realize that when you Cash out

reFinance you’re essentially just adding more Debt to your life at the expense of your home Equity that you work so hard to build up

if you want to grow your wealth and Achieve Financial Freedom one day what you need isn’t more more Debt but less of it so don’t get tempted by the bank’s Cash Out offers number seven most dangerous Financial product 401K Loans another supposedly

easy way to access money from Assets that you own this time it’s not your house it is your boring retirement account 41k what has it done for you recently not much right it just sits there and you can’t even touch it until you’re 60 but what if you can access that

money right now wouldn’t that be great well have you heard of the 401K Loans no you’re not withdrawing your Capital from your 401k account you’re just borrowing from your 41k taxfree temporarily as long as you repay the money within a set amount

of time no worries the money in your 41k account is not impacted however in my perspective we’re playing a very dangerous game most times when people consider taking out a 41k Loan it’s because they’re not in the best financial situation and it sounds like an

attractive offer especially compared to Alternatives like highin Credit card Loan or personal Loans but again we’re playing with fire if 41k Loans are not managed well we could be saddled with penalties fees and in the worst

case case scenario a depleted 41k account your 41k account is a foundational pillar of your retirement that isn’t something you want to mess around with a quick reminder if you’re finding value from this CashNews.co and would like a summary of all the topics that I’m covering here

please go to the link I’ll have in the description below to grab your free onepage pdf summary I list out all the lessons in a simple to digest format so you can quickly reference them next time you encounter a questionable Financial product so make sure to go to the link I’ll have in

the description below to grab your free copy all right with that said let’s get back to the CashNews.co number eight most most dangerous Financial product in the line of Loans student Loans students consume student Debt like candy it’s

so common that it’s synonymous with getting an education or you going to college how much student Debt are you taking on not realizing how dangerous student Loans are unlike a home mortgage where the bank will just take away your house and you can walk away

free student Loans survive bankruptcy yes there is a process you can take to discharge it but it requires separate lawsuit and the process is cumbersome bottom line student Loans carry an extra risk that not enough people talk about Banks can your wages and even

your Social Security they can continue to collect from you until the day you die so think hard about taking on student Loans whether for yourself or for your children good education doesn’t have to cost you an arm and a leg here are a few guidelines to follow if you do need

to take on student Loans one always borrow from the federal government first they offer the lowest Interest Rates and greater flexibility two avoid private Loans they’re less flexible and less forgiving than Federal Loans

three evaluate Loan consolidation carefully most often consolidation leads to low lower payments but that’s not because your Loan amount is decreasing most often they’re just lengthening the term of the Loan and with a longer term

you’re often paying more over time four pay them off as quickly as possible there’s no better way to gain control of your financial life and emotional peace than by eliminating Debt especially student Debt number nine most dangerous Financial product

more Loans small business Loans if you’re thinking about charting your own pathway and starting your own business you might be tempted to take out a small business Loan to get started however cautious many have very high Interest

Rates and you can get caught up in a dependency cycle being dependent upon the bank’s money to maintain your business also if you like collateral because you’re just getting started you have to act as the guarantee a personal guarantee if the business doesn’t do well and

you have a hard time paying back the borrowed money your Savings your car or your home could be at risk if you want to start a business a business Loan should be your last option test out your idea first make the cheapest smallest unit of your product and see how

the market reacts before you decide to invest more money into it number 10 most dangerous Financial product rent to own rent to own is a popular financing option that retailers offer to Consumers to get them to buy way more than they need I know this one personally because I fell for it in my early

20s when I was 23 years old needing to furnish my new apartment I nely walked into a local furniture store and walked out with way more furniture than I needed because they were offering a 0% financing rent to own deal for the first 6 months I spent the next 2 years paying down these expensive

furniture via interest that eventually ran up to 8% % the total cost far exceeding the furniture’s original retail price these rent to own sounds tempting but understand that they’re just playing on your desire for immediate gratification be nice to your future self and buy only what

you can afford today in cash number 11 most dangerous Financial product on the market low down payment car Loans you only have $1,000 to put down or $0 no worries we got you covered let me do some magic on my special calculator and we’ll make sure you walk out with your dream

card today sounds too good to be true it is don’t fall for it cars depreciate very quickly often losing 20 to 30% of value in the first year alone when little or no money is put down Loan balances can soon exceed the car’s value making it difficult to sell or trade the

car without taking a financial loss additionally low down payments often mean longer Loan terms and high interest charges leading to a much higher total cost of the car car Loans are most families second biggest expense that comes after their home the more you can

minimize it the better it will be for your Wealth Building Journey the number 12 most dangerous Financial product in the market in the theme of cars low payment car leases do you ever wonder why car dealerships never talk to you about the total cost of the car only the monthly car

payment that is because most people anchor off monthly payments not the total cost total cost is too overwhelming thus low payment car leases are one of their best weapons for people who are sensitive to monthly cost however they should come with their own warning labels for one while a low monthly

payment might sound nice and surface many come with strict terms and potential hidden costs mileage limits early termination fee need to maintain the car in excellent condition and higher Insurance cost and since you don’t own the car you don’t build up any

Equity after all that payment you need to return it or lease another car to continue driving never being able to get out of the devastating cycle of car payments number 13 most dangerous Financial product in the market actively manage mutual funds and

href="https://cashnews.co/etfs" style="font-weight: bold; color: #1a73e8; text-decoration: none;">ETFs activ manage funds employ team of analysts and fund managers to handpick Investments with the aim of outperforming the market however employing a team of smart people is not

cheap they cost money most of these funds have pretty high expense ratios typically 1% or more but what is worse is that most AC managed funds underperform their Benchmark index over time you pay more but you receive less what an awesome deal right but active manag funds will never advertise that

they have a horrible track record instead they just bury the underperforming ones and launch new funds to entice new investors when there’s a lot of money to be made especially for the investment firms don’t be surprised how far they will go to keep their highly

Profitable investment products selling avoid overly priced active manag funds and offer passively managed index funds or ETFs number 14 most dangerous Financial product single

stocks when people think about investing in the Stock Market most people think about individual companies Nvidia Apple Disney Etc and many think that if they can invest in the right stock the right company they can make money in the market however the truth is that most people

cannot pick winning stocks and that includes you and I there are so many factors that impact an individual stock price both short-term and long-term new company management new products scandals state of the industry state of the economy the list goes on in hindsight we might think we knew this one

company was going to do well and this other one was going to fail however the truth is that no one knows because no one has all the information and no one knows the future so avoid all the financial media that claims that they know what the future holds there is no such a thing as the best stocks

to buy today today’s hot Stars will become tomorrow’s watched out Benchwarmers and the cycle continues win by investing in the whole Market through lowcost index funds number 15 most dangerous Financial product unnecessary investment add-ons all right let’s say you’ve been

really good at avoiding High fee active managed funds and risky single stocks you stick to your simple lowcost broad market index fund strategy however every time you log into your investment account you keep getting these upsell notices about add-ons check out our worldclass Wealth

Management Services book your free Consulting call with us today oh you don’t like talking to humans no worries how about our Robo advisor service now to be honest there is a time and a place for some of these Services however most times we don’t need them if you have a simple

investing strategy you’re essentially doing what most of these expensive Wealth Management and Robo advisory Services can do the only difference is they charge you quite a bit for it money that can be saved and invested number 16 most dangerous Financial product fancy risky

Real Estate deals now I’m a huge fan of Real Estate they’re a great asset to diversify your money beyond the Stock Market however not all Real Estate Investments are equal while there are tons of great

investment opportunities out there there are tons of horrible ones risky ones ones you shouldn’t touch with a stick here are a few examples one highly overleveraged deals where most of the Capital comes from borrowed money remember more Debt always signals

more risk and in my book unnecessary risk two properties in an untested Market yes the person trying to sell you the deal will say it’s an up oncoming market and other people haven’t seen the opportunity yet but do your own sniff test when things sound too good to be true they most

often are three overly complex Deals Deals where you need a 98 P PowerPoint to explain if you can’t wrap your head around it in 30 seconds it might be a sign that it is a risky deal you should stay away from if you want to invest in Real Estate I would consider simple tried

and true methods such as publicly traded reats reputable crowdfunded funds or if you have the cash be your own landlord by buying and renting out your own property just remember to start small and build your skills and knowledge before jumping into bigger more complex deals number 17 most dangerous

Financial product annuities annuities are often marketed as a safe stable option for retirement Income hand over a lump sum of your money to an Insurance company and in turn they’ll offer you guarantee and Security in the form of Lifetime

Income however there’s so much that can go wrong for one you’re essentially locking your money up with Insurance company placing all your future Security on this one company’s ability to meet their end of the bargain What happens if they run into

financial trouble and have solvency issues what happens to your future security then two many have very complex terms as well as high fees admin fees mortality fees and expense risk fees just to name a few all which in my books make annuities quite risky three you give up control what happens if

you change your mind because your circumstances change annuities often impose strict surrender periods and Hefty penalties for early withdrawals lastly High commissions I’m always suspicious of financial products with high commissions and annuities are one of the most

Profitable products not only for the Insurance company selling them but for the salesperson as well I wonder why I feel most people would do better managing their own money via a very simple investment strategy number 18 most dangerous Financial product in the

market and this one is my favorite permanent life Insurance sometimes they go by whole life universal life varable life forever life who knows now they have so many names to not only confuse you but to make them sound better than they actually are in the simplest form permanent

life Insurance combines Insurance and investing it provides coverage through the whole life of a person while at the same time containing a Savings component however because it claims to do both Insurance and investing it charges a

significantly higher premium compared to a simple term life Insurance they also have super complex terms and most underperformed compared to other Investments because let me be blunt they suck these are another one of those products that make tons of money for

people selling them but at your expense you don’t get what you pay for actually the complete opposite so don’t waste your money if you need Insurance get a simple term life Insurance for a fraction of the cost then invest the difference in a simple

broad market index fund to truly grow your wealth thank you guys for watching in the line of financial products if you want to learn what I consider some of the best financial products worth every Penny please check out my CashNews.co here until next time all the best