October 4, 2023 at 2:28 am

‘It’s basically a glorified savings account.’ Woman Explains Why You Need To Actively Manage Your Roth IRA Or Else Your Money Won’t Grow

by Laura Lynott

Source: TikTok/@dominiquejonae

This software engineer has shared a “cautionary tale” about investing in a Roth IRA.

Dom, 28, from Washington DC, told her followers her friend, another engineer, told her about an investment she’d made.

But what should have been a sweet investment account was NOT paying out for her!

Source: TikTok/@dominiquejonae

“This friend opened up” about their investment and she wasn’t “seeing a lot of growth,” the TikToker said.

“I also have a Roth IRA with (the same company)… I asked them: ‘Hey, what are you investing in?’

Her friend said she’d just been “contributing to that account” and had not “chosen any stock options.”

Source: TikTok/@dominiquejonae

She explained to her friend, that’s why she wasn’t seeing growth – her money wasn’t being invested!!!

“I assume the set up is the same with other banks that offer a Roth IRA,” the engineer told her followers.

“When you contribute money to your Roth IRA account, it first goes into a sort of holding account,” she added. 

“It’s a money market account… it’s basically a glorified savings account.”

Source: TikTok/@dominiquejonae

She explained while the basic account was interest bearing, with interest rates comparative to other savings accounts, if folks don’t choose what to invest in – they ain’t gonna make any cash!

She said it’s “just a stable” account for money while the person wants to decide where they invest their money.

Source: TikTok/@dominiquejonae

Watch the full money clip here:


Do NOT make this mistake with your Roth IRA #rothira #personalfinance #investing #moneytok #financetok #blackgirlmoney #blackmoney #buildingwealth

♬ original sound – Dominique Jonae

And here’s what y’all investment folks thought:

Some folks have left their Roth account for YEARS without investing!!!!

Source: TikTok/@dominiquejonae

And this video might have just saved somebody A LOT of pain.

Source: TikTok/@dominiquejonae

And some folks are really loving Fidelity’s options for this…

Source: TikTok/@dominiquejonae

This is sooooo important for your long term financial health.

Don’t ignore it!