IRA Rules

Posts Tagged ‘roth ira rules withdrawals’

Question: Are you losing it all in the market?

I am devastated. I have well diversified stocks and i am NOT panicking.
Playing by all the rules! I am using the my withdrawals from my IRA to make my property tax and condo maintence fees. Now i may lose it all.
I have $575,000. down from $1,400,000!
I have been losing in this bear market for 7 years.
secular bear market

Answer: You may be playing by all the rules set down by the regulators but apparently you never bother making you’re own rules for investing.

Every investor/trader must have 4 major plans in place before they trade/invest
1- A written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. And the first item in your plan should be ‘never go into an investment unless you know when and/or where you are going to get out.
2 – Sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you trade/invest.
3 – A written money management program in place. Part of sound money management is to control your invested capital, If a stock goes down 8-10% get out, you can always buy it back.
4 – A full and complete understanding of the rules & regulations of the industry.

Here are some of the rules that I follow and have been following for many years,
1-The first and primary rule should be never enter into a trade withoutknowing when and where you’re going to close the trade.
2-Never invest on emotions; feelings have no place in determining investments.
3-Only buy stocks with real sales and real earnings, does not apply to pennystocks since they are crap shoots and are traded as fun things and not as investments.
4-Only consider buying stocks with each of the last three years’ earnings up 25%+, return on equity of 17%+ and recent earnings and sales accelerating.
5-Avoid cheap stocks, buy only higher quality stocks selling $10 a share and higher.
6-Never buy if the firm is filing or in bankruptcy.
7-Learn how to use charts to see sound bases and exact buy points.
8-Stay with up trending stocks, never buy on down trends. This does mean “the trend is your friend”.
9-Always buy companies with new ideas, styles or products.
10-Cut every loss when it’s 8% below your cost. Make no exceptions so you can always avoid huge, damaging losses. You can always average “up”..
11-Follow selling rules on when to sell and take profit on the way up.
12-Never average down
13-Always sell when management cuts sales or earnings forecasts
14-Buy when market indexes are in an uptrend.
15- Reduce investments and raise cash when general market indexes show five or more days of volume distribution.
16-Pick companies with management ownership of stock.
17-Select stocks with increasing institutional sponsorship in recent quarters.
18-Current quarterly after-tax profit margins should be improving, near their peak and among the best in the stock’s industry
19-Don’t buy because of dividends or P-E ratios.
20-Find out if the market currently favors big-cap or small-cap stocks.

I don’t mean to preach, only trying to help you going forward. Good luck in the future, stary with it, it has to get better for you.

Should You Convert Your IRA to a Roth in 2010?

Question: What are the rules about withdrawing contributions (not interest) from a Roth IRA?

Please cite a source, thank you!

Answer: You can always withdraw Roth contributions–any time for any reason–penalty and tax free. The reason is that you deposited that money after-tax, so you don’t owe the govn anything on it (now or ever).

Sources: www.fool.com; www.cnnmoney.com; Yahoo! Finance; MSN Money; et al.

If you want “proof” of a source, just Google “Roth IRA withdrawals.” You should get dozens of official sites ready to confirm this information.

Retirement Plans & Investments : How to Set up an IRA Account