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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Terrapin who wrote (4424)	7/15/1998 12:16:00 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78748

John Kolb: re: setting up Roth IRAs and "pretty basic stuff". Well I think the setup of it/them is a basis all right , but not at all "basic stuff". Lot of people wrestle with the issues you mention. And these issues are sometimes never really resolved permanently-- they keep coming back into our lives too. Key to me now is your expression "have any experience trading stocks". Not "investing" but "trading" --- that's a tell to me. So given the fact you want to trade stocks -- you should set up one ROTH as a trading vehicle. In trading, you won't have the favorable long term gains, and the tax consequences for short term are deferred until you cash out of the ROTH. So this opinion is for what I think you want. But maybe really the wrong issue. To me, the question is not the tax consequence, but rather should you (or anyone) even trade stocks. That you want to trade says to me --my own opinion of course-- that the best advice would be to put you in a position where you cannot so easily and cavalierly trade stocks. Because trading is not a method for making money that has much validity. Putting you in a ROTH IRA with an internet broker is just what will encourage you to trade more (and lose more IMO.) However, as stated by me in other posts, nobody wants to hear this, and only people who've traded a lot and lost can understand this. So be it. I assume this is a rollover ROTH. I can't comprehend an individual stock-- trading or investing-- vehicle if it's just the annual $2k (My $2k's in an eq.-inc. mutual fund.) Get yourself a good CPA tax man (or woman)-- who can determine tax consequences of various options given your life circumstance and goals. If you're going to trade stocks and you are interested also in dividends within a ROTH (if your CPA says this is okay for you), my (unqualified) opinion is to keep the dividend ROTH account separate from the ROTH trading account. In this way, when you look at your separate accounts, you will know why a particular stock is in each particular account. Also you should see over time, which account(s) performs best for you, which types of investing you are relatively better at, and therefore where you might best direct further inflows of investing funds. JMO... and... Alert: I seem to keep being wrong many, many times-- possibly related to my penchant for having way too many opinions -g-. Also please note, as my wife keeps reminding me, I'm not qualified to give any legal, accounting, stock market, medical, marital, or cooking advice. 100 guys = 150 opinions. Ask some people on this thread also: Subject 18171 Good luck. Paul Senior