Question

Financial Issue Discussion --Wall Street bankers rip off people and investments may go down in value. It is better just to put your cash in the bank to save for retirement.

“Provide a personal experience that you have had or have read about with that issue”.

Answer 1

When you save money for retirement you usually go the asset management
services of the investment bank. For example if you have $100000
to save for retirement and give it to an investment bank like Goldman Sachs to invest
it for you.
Bankers or asset managers who manage the money for investment banks
are usually skilled money management professionals. These money management
professional are known to outperform the benchmark indices like the Dow Jones,
S&P 500, Nasdaq, etc. The bankers get paid based on the amount of money they manage
and the rate of return on the investments they manage for the investment bank.
Saving cash in a savings deposit with a bank can earn you a steady rate of return.
In other words, a savings account is less risky than investing your money in a equity
related fund. However, the market generally gives a positive rate of return except in
situations of a recession.
If an investor is willing to get a higher return by making high risk investments,
then the investor should invest their money with an investment bank.
On the other hand, the investor should invest their money in a savings account with a bank if their
risk appetite is less.