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Strategies & Market Trends : Roth IRA ideas -- Ignore unavailable to you. Want to Upgrade?

To: Trevor Goodchild who wrote (112)	4/28/1998 7:15:00 PM
From: mod	Read Replies (1) \| Respond to of 388

Trevor, I believe the hole is that anything you transfer to a Roth will be valued at fair market value as of the transfer date, not at what you paid for it. Dennis

To: Trevor Goodchild who wrote (112)	4/28/1998 9:05:00 PM
From: Howard R. Hansen	Respond to of 388

Most likely I am missing something in your logic but I believe your approach of converting a regular IRA into a Roth IRA after hitting it big with options will cost you more in taxes then if you originally invested in a Roth IRA. I can't think of any circumstances in which you would save on taxes using your approach as compared with initially investing in a Roth IRA.

To: Trevor Goodchild who wrote (112)	4/29/1998 2:06:00 AM
From: Sonki	Respond to of 388

common IRS was not born yesterday ! here is a trick though. very often one buys a stock/leaps/option when stock is pretyy hi and expects it go higher. You don't take any risk in your Roth. At first you buy your initial position in ira, and wait for it go down and on a down day move it so atleast you know u got support. if it never goes down u made mony in IRA and u should be happy anyway and might well as share a little w. your uncle Sam.

To: Trevor Goodchild who wrote (112)	4/29/1998 3:26:00 PM
From: Bill Shepherd	Read Replies (1) \| Respond to of 388

Trevor: let me point out two significant holes in using IRA's for risky investments, such as options. 1) You cannot deduct losses from an IRA, whereas you can deduct losses in a taxable account. 2) You cannot replenish losses in an IRA. That is, if you lose the $2000, you cannot replenish it, EVER. This may be a somewhat risky strategy, if you are planning to use IRA funds for you retirement. Lets say you build up a $20,000 IRA account, and then make a big bet on the latest high-tech option play. What are you going to do if you lose it all? You won't even get to offset the losses against gains elsewhere. I'd save my risky investing for a taxable account. Regards...Bill S