SEP IRA

Posts Tagged ‘SIMPLE IRA’

Question: Simple ROTH IRA question?

Hello, I am 29 year old self employed programmer working from home in the US. If I were to get a Roth IRA with mutual funds, do I have to constantly monitor and buy/sell stocks within the IRA? I used to trade stocks and used to freak out when the stock tanked in one day, so I told myself I will not get involved in that.

I am thinking that a financial advisor can pick a few good mutual funds for me and all I have to do is send a certain amount of money to it per month and when I am 55 1/2 years old I can begin withdrawing. Please let me know how this works and thanks.

Answer: The expenses at mutual funds can eat away greatly at your profits. Exchange Traded Funds hold many benefits over mutual funds. Besides, with all the mutual funds out there today, how do you know who to trust? My other belief is that by adjusting just a little bit, you can greatly increase your overall return.

Here is what I do with my long term trading account. It is a very simple concept. Look at a chart of the S&P 500 – most places the ticker symbol is SPX. Make it a weekly chart – meaning each unit (bar, candle, etc.) of time is one week. Then put a 50 week exponential moving average on the chart. This setup has an uncanny ability to direct the S&P 500. Since you can’t buy SPX, you can use SPY as an alternative. When the price is above the moving average, you buy the stock. When the price gets below the line and continues moving down, you sell it. This was an easy way to be out of the market during 2000-2003 and again at the beginning of 2008.

I am not a stockbroker or licensed in anyway. Just someone fed up with the system and decided to do a little research. Your mileage may vary.

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