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!

“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.”

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.”

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.

Watch the full money clip here:

@dominiquejonae

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!!!!

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

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

This is sooooo important for your long term financial health.

Don’t ignore it!