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In a recentYouTube video, he shares four commonly recommended investments he thinks people should avoid.
Some are riskier than their advocates make them seem.
Others are relatively safe but less lucrative than other options.
Check out Kamels reasoningand find out where to look instead.
Bank Investments
Kamel said this tip might be tough to swallow.
Most of us grew up thinking of the bank as the safest place to keep our money.
Thats still true, but according to Kamel, its not the best place for that money to grow.
As Kamel explained, banks are in the business of growing their assets.
The investment products they recommend will help their bottom line but not necessarily yours.
Bank Product No.
1: CDs
Takecertificates of deposit, which banks call CDs.
That money will usually earn more than it would in a savings account.
Unfortunately, CDs charge fees if you have a go at withdraw your money early.
Those fees can be high enough to cancel out your earned interest, according toPNC.
Bank Product No.
2: Bonds
Bonds are another bank-issued product that usually isnt your best bet, Kamel said.
You get that money when the bond matures or when the issuing agreement promises a payout.
Bonds arerelatively safe investmentsbecause theyre not subject to the stock markets volatility.
Banks benefit because as with CDs, they have custody of your money until maturity.
But there are better things that money can do.
Whole, universal and variable life insurance policies fall under thepermanent lifeumbrella.
Banks and financial influencers recommend them because they include the option for a savings or investment component.
You only pay taxes if youwithdraw, according to the U.S. Securities and Exchange Commission.
That might mean a smaller death benefit for your heirs.
Even if your savings or investment component grows, you cant leave it to your beneficiaries.
The insurance company can keep any cash value in your policy when you die, according toGuardian Life.
Leveraged Real Estate
Leveraged real estate is an investment property you buy with borrowed money.
Kamel said the goal is to generate rental income and build equity so you come out ahead.
If you think that sounds risky, youre right.
Risks in the Real Estate Market
Thereal estate marketis extremely volatile, Kamel explained.
Housing prices have always been vulnerable to various economic factors, including interest rates, unemployment and inventory.
A market downturn can destroy your equity, leaving you with a loan you cant repay.
Its a major gamble.
And, as Kamel disclosed, its how financial guru Dave Ramsey went bankrupt.
He had leveraged debt to invest in real estate when a bank called in his loans.
Current Conditions
Today, the market is even more unpredictable.
Rising interest rates have made mortgages more expensive and the global economy has made future conditionsdifficult to predict.
In such a volatile market, the risk of leveraging is even higher.
It takes longer, he said, but the risk is much lower.
You cant go underwater on a mortgage you dont have.
These apps make stock buying accessible to the general public, which sounds positive.
The information is helpful, but apps dont offer it solely to help you.
They use notifications and alerts to get your attention and encourage you to buy more stocks.
Kamel said those stocks may not be suitable for your interests.
Apps frequently offer high-risk investment options that casual investors arent prepared to handle.
They push hot stocks and trendy products to get you active and theres no accountability if you lose.
Where Should You Invest Instead?
After warning you away from non-lucrative and dangerous investment options, Kamel offered two pieces of positive advice.
A401(k)lets you contribute pre-tax earnings and may have an employer match.
ARoth IRAdoesnt go through your work, so you might have more investment choices.
Theyre beginner-friendly and make it easy todiversifyyour portfolio, thus reducing the risk of investing.
If youre new to investing, a financial professional can offer guidance.
Look for someone with credentials and avoid the hype from online influencers.
As Kamel said as he closed his video, get rich quick often means going broke faster.
Slow and steady wins this race.
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