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Strategies & Market Trends : Jim's Nasdaq100 Special as a basket.
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To: Magnatizer who wrote (1808)10/2/2000 12:07:33 AM
From: James F. Hopkins  Read Replies (2) of 2103
 
Mag; One more thing I forgot. If the market does start
a strong rally ( but only if ) I would then transfer
ALL my IRA cash to my Regular Margin Account, for
60 days max as it's like a no interest loan and the 60 day
rule is good only once a year

Like you can borrow from your IRA once a year any amount
you have for 60 days and if you put it back into the IRA
before that 60 days is up then you don't pay a distribution
TAX. ( you do pay TAX on profit made in the regular while
it's there) however during strong moves it can be worth
while as it lets you short or margin that much more for
that 60 day period.

You will have to pay TAX on whatever amount you don't you don't put back in in 60 days.
Again it's a once a year 60 day ( no interest type
of borrowing your own money ).
I've only done it once and that was in 99.
-----------------

Lets say for some reason you get margined to the Max
in your regular account and your afraid of a margin call,
or even get one. Well if your Ira is in good shape you
can swing enough over to come off margin with out
selling a thing and that gives you a 60 grace period
to restructure your account without forced sells.

In that respect the IRA is a no cost 60 day safety net.
I haven't gotten in that shape but I know of a few who
did and they didn't know about the 60 day IRA borrow rule.
Jim
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