No. of Recommendations: 1
No taxes, no losses -- within your IRA -- even for day trading, if you do that! The downside, too, of course, is that if you screw up, and LOSE money, it's jusy plain gone -- no tax breaks for that! Your IRA is like a license to make "free money", in that, within your IRA, you can make all the profit you're wise (or lucky) enough to make!

However, be careful what you do in your IRA. NEVER "play" with more money than you can afford to lose! Don't be like some of these idiots who dump ALL, or a lot of, their money into some one stock, for example, only to see it evaporate! Stay diversified, but I'd sure as heck NOT waste time trying to invest in "tax-free" things WITHIN the IRA!

I've sometimes even day traded with a small portion of my IRA money, making as much as $1,000 or more in as little as half an hour a few times -- all "tax free", until I withdraw it. (I do NOT do that very often!)

Moreover, if your total income is low enough, you'll not even pay taxes on withdrawals! For the past two years, the few thousand I pulled from my IRA still left me paying ZERO taxes to the federal or state government.

Be careful -- and good luck!

Vermonter

Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement