Your distinction between retirement accounts and taxable accounts is a good one, but I wonder how many people have trouble treating their retirement account as their "trading" account.
I, for one, certainly have a difficult time thinking that way. I'm much more conservative within my retirement accounts even though I rationally understand the advantage the tax status gives me. Because I can't readily replenish a mistake in a retirement account I choose less risky investments. My biggest gainers have all been in my taxable accounts and the capital gains are making me shriek, but it's still difficult to purchase my favorite higher risk investment (usually tech) in an IRA. If I screw up in my taxable account I just send in more money. If I screw up in my Roth, well... I get to put in another $2000 next year and try again - plus I can't deduct the loss. My various IRAs have Deswell, Central Parking, Express Scripts, and majority cash right now. Nothing fancy at all, mostly buy-hold, and certainly not stuff I plan to trade.
I know I should take advantage, but if it's a riskier investment I tend log into my taxable account. Do others find themselves doing the same - in spite of themselves?<g>
Shane |
