Who does NOT have a bank account? Why not?

[chazc]

Originally Posted by 2LipsLegit

Originally Posted by jaywalkinsince91

I'm 19, work a part-time job averaging 16 hour weeks making 8.25 an hour......i get paid every week and the checks are only 70 bucks after taxes. I have an account but im thinking of getting rid of it, I went from having 180 in my bank to 138 before my first withdrawl and i withdrew 90(40 at atm and 50 in the branch) and checked my balance the next day and there was only 3 bucks left in my account(thats 90 unaccounted for) and i've only had the account for 3 weeks. why should i have a bank account?

16x8.25=132

thats a lot of taxes....

Yeah bro. Talk to your hr and have them give you a new w-4 to fill out.

 

[mustbefire]

I most certainly have a bank account but to the interest you earn on your balance is a complete joke unless you have upwards of 100k + in the bank at a time. Banks are a necessity but the whole system is racket when you factor in all of the fees they charge you so they can use your capital to generate profits that far exceed the interest you receive.

You can earn a greater return on your money by buying kicks and sitting on them.

 

[mustbefire]

I most certainly have a bank account but to the interest you earn on your balance is a complete joke unless you have upwards of 100k + in the bank at a time. Banks are a necessity but the whole system is racket when you factor in all of the fees they charge you so they can use your capital to generate profits that far exceed the interest you receive.

You can earn a greater return on your money by buying kicks and sitting on them.

 

[ouch my feet]

Originally Posted by presequel

reading this thread makes me believe that 95% of people in here dont or will never invest in mutual funds or have a IRA.

and since most people here are fairly young, need to bring this up. I have plenty of cash, but I also have mutual funds and a roth IRA. its better to start young.

William and James are twin brothers who are 65 years old. 45 years ago (at the end of the year when he reached 20), William started an IRA and put $2K in the account at the end of each year. After 20 years of contributions, William stopped making new deposits but left the accumulated contributions in the IRA fund. The fund produced returns of 10% per year tax-free. James started his own IRA when he reached the age of 40 (just after William quit) and contributed $2K per year for 25 years, making his last contribution today. James invested 25% more money in total than William. James also earned 10% on his investments tax-free. What are the values of William’s and James’s IRA funds today?

Vintek sent along the answer in a spreadsheet. It’s eye-opening.

William has $1,365,227. James has $218,364. James invested 25% more than William, but through the magic of compounded returns, William’s IRA fund is worth more than six times as much! For some real fun, download the spreadsheet and plug in your own numbers. I’m having to contribute $5,000/year because I didn’t start in time. How about you?

(Note that the 10% assumption used in the charts and in the spreadsheet is arbitrary and for illustrative purposes only. An 8% return-on-investment is more realistic over the long term, and interest rates on CDs are half that. Still, the same principle applies regardless the rate, as long as the rates are consistent between sample cases.)
http://www.getrichslowly....terest-favors-the-young/

So yeah, cash is king, what do I need banks for, etc. Yes you can buy a house in cash. Yes you can buy a car in cash. But is it smart to have 600k in cash in your house safe? When it can be making a modest 5-8% in interest every year, then compounding? I know this thread was started just for regular bank accounts, but if you don't even trust them with that, then I know you guys won't be making any great investments. And having a savings through the bank doesn't cut it, you basically make no money off that.

I realize most people here are young, but save at an early age, put it into a T Rowe Price account or Vanguard account and you'll be rewarded later on. It can be risky, dependin on the route you take, but even with safe returns its much better. With a roth IRA you can only contribute 5k a year, but in the above example, the guy only put in 2k every year, for 20 years, starting at age 20. Then he stopped. thats 40k. He never touched it again. He ended up with $1,365,227. Tell me if your shoe box can do that in your closet without you touching it.

Hopefully other members here who are knowledgable on this subject can jump in as well.


Investments are key, I absolutely agree. Whether you have a bank account or not, its about making smart investments and long term financial decisions to allow your money to grow. Holding your money in a bank account won't do you any good just as holding anything over $100k in cash in a safe won't do you any good. The bottom line here is about getting educated.
Unfortunately, you can't compare a roth IRA to a shoebox. On top of that, there is no need to compare as you can enjoy both of the options regardless of having a bank account.

 

[ouch my feet]

Originally Posted by presequel

reading this thread makes me believe that 95% of people in here dont or will never invest in mutual funds or have a IRA.

and since most people here are fairly young, need to bring this up. I have plenty of cash, but I also have mutual funds and a roth IRA. its better to start young.

William and James are twin brothers who are 65 years old. 45 years ago (at the end of the year when he reached 20), William started an IRA and put $2K in the account at the end of each year. After 20 years of contributions, William stopped making new deposits but left the accumulated contributions in the IRA fund. The fund produced returns of 10% per year tax-free. James started his own IRA when he reached the age of 40 (just after William quit) and contributed $2K per year for 25 years, making his last contribution today. James invested 25% more money in total than William. James also earned 10% on his investments tax-free. What are the values of William’s and James’s IRA funds today?

Vintek sent along the answer in a spreadsheet. It’s eye-opening.

William has $1,365,227. James has $218,364. James invested 25% more than William, but through the magic of compounded returns, William’s IRA fund is worth more than six times as much! For some real fun, download the spreadsheet and plug in your own numbers. I’m having to contribute $5,000/year because I didn’t start in time. How about you?

(Note that the 10% assumption used in the charts and in the spreadsheet is arbitrary and for illustrative purposes only. An 8% return-on-investment is more realistic over the long term, and interest rates on CDs are half that. Still, the same principle applies regardless the rate, as long as the rates are consistent between sample cases.)
http://www.getrichslowly....terest-favors-the-young/

So yeah, cash is king, what do I need banks for, etc. Yes you can buy a house in cash. Yes you can buy a car in cash. But is it smart to have 600k in cash in your house safe? When it can be making a modest 5-8% in interest every year, then compounding? I know this thread was started just for regular bank accounts, but if you don't even trust them with that, then I know you guys won't be making any great investments. And having a savings through the bank doesn't cut it, you basically make no money off that.

I realize most people here are young, but save at an early age, put it into a T Rowe Price account or Vanguard account and you'll be rewarded later on. It can be risky, dependin on the route you take, but even with safe returns its much better. With a roth IRA you can only contribute 5k a year, but in the above example, the guy only put in 2k every year, for 20 years, starting at age 20. Then he stopped. thats 40k. He never touched it again. He ended up with $1,365,227. Tell me if your shoe box can do that in your closet without you touching it.

Hopefully other members here who are knowledgable on this subject can jump in as well.


Investments are key, I absolutely agree. Whether you have a bank account or not, its about making smart investments and long term financial decisions to allow your money to grow. Holding your money in a bank account won't do you any good just as holding anything over $100k in cash in a safe won't do you any good. The bottom line here is about getting educated.
Unfortunately, you can't compare a roth IRA to a shoebox. On top of that, there is no need to compare as you can enjoy both of the options regardless of having a bank account.

 

[letitshine24]

If people do not want a bank account, so be it. Based on their previous experiences or financial needs, everyone has their preference. While SOME banks have frauded customers through investment schemes, you being a victim of a scheme is highly unlikely. If my money is being laundered around, I honestly do not care. As long as when i wake up, my balance is still what it is suppose to be, im good. Btw, FDIC insures your account up to 250k. Moreover, the insurance is government backed, meaning I will get my money regardless. Some of you conspiracy theorist need to lay low, and relax.

 

[letitshine24]

If people do not want a bank account, so be it. Based on their previous experiences or financial needs, everyone has their preference. While SOME banks have frauded customers through investment schemes, you being a victim of a scheme is highly unlikely. If my money is being laundered around, I honestly do not care. As long as when i wake up, my balance is still what it is suppose to be, im good. Btw, FDIC insures your account up to 250k. Moreover, the insurance is government backed, meaning I will get my money regardless. Some of you conspiracy theorist need to lay low, and relax.

 

[dipsetgeneral]

Originally Posted by ricky409

Originally Posted by ksteezy

Originally Posted by DipsetGeneral

I'm 21, and I don't. I have a wallet. What do I need a bank account for?

bro time to log off and get a job, that +!!+ is sad.

  

 

[dipsetgeneral]

Originally Posted by ricky409

Originally Posted by ksteezy

Originally Posted by DipsetGeneral

I'm 21, and I don't. I have a wallet. What do I need a bank account for?

bro time to log off and get a job, that +!!+ is sad.

  

 

[villansfinest]

Ouch my feet wrote:
Unfortunately, you can't compare a roth IRA to a shoebox. On top of that, there is no need to compare as you can enjoy both of the options regardless of having a bank account.


This is what I have been curious about. Please explain to me how you can have an IRA without a bank account? How do you contribute?

If you only use cash, what happens when you run out of cash? You just do without? What if you are away from where you keep your cash? How do you get back? Isn't that inconvenient?

I am aware that individuals can purchase cars and homes and other high dollar expenses for full cash. Paying in full. But if you can not pay in full, how do you make payments using cash? Purchasing money orders and mailing them, or actually delivering them to their destination? Isn't that inconvenient?

I am trying to understand, what is the benefit to not having a bank account? How do you feel like you are doing things better than if you did have a bank account?

Thank you for all of the opinions being shared.

 

[villansfinest]

Ouch my feet wrote:
Unfortunately, you can't compare a roth IRA to a shoebox. On top of that, there is no need to compare as you can enjoy both of the options regardless of having a bank account.


This is what I have been curious about. Please explain to me how you can have an IRA without a bank account? How do you contribute?

If you only use cash, what happens when you run out of cash? You just do without? What if you are away from where you keep your cash? How do you get back? Isn't that inconvenient?

I am aware that individuals can purchase cars and homes and other high dollar expenses for full cash. Paying in full. But if you can not pay in full, how do you make payments using cash? Purchasing money orders and mailing them, or actually delivering them to their destination? Isn't that inconvenient?

I am trying to understand, what is the benefit to not having a bank account? How do you feel like you are doing things better than if you did have a bank account?

Thank you for all of the opinions being shared.

 

[snaggykicks]

Originally Posted by ALDY

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/ Thread.

  

 

[snaggykicks]

Originally Posted by ALDY

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/ Thread.

  

 

[mr jordan04]

Originally Posted by WhatsLosinLike

How can you NOT have a bank account? Couldn't live without mine

 

[mr jordan04]

Originally Posted by WhatsLosinLike

How can you NOT have a bank account? Couldn't live without mine

 

[2heavencent0]

Originally Posted by MrDoeBoI

Originally Posted by biff lawson

Being about that life >>> Financial growth and security

Pretty much always kept it on hand no need for a paper trail

Hahahahaha

 

[2heavencent0]

Originally Posted by MrDoeBoI

Originally Posted by biff lawson

Being about that life >>> Financial growth and security

Pretty much always kept it on hand no need for a paper trail

Hahahahaha