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Is using your IRAs as a pool of money for risky investments a bad idea ?
But I harbour dellusions about knowing the industry that I work in. I keep track of several companies: and hope to make informed predictions about when a company will grow or slow down. The said industry happens to be very volatile as well.

In my own simple minded way I see IRAs as: and sell as many times as u want, just paying brokerage fees. Great for short term investments, that you want to sell and reinvest more than once a year. Perfect for buying the volatile stocks that I keep track of and sell them off when I see that a company may not do too well.

Can someone please comment on this. Is there a flaw in the logic I have proposed above. Just in case someone may find this information useful in making a comment. I am 23 yr old and make around 70k.

1. "Informed Predictions" are still predictions. It sounds like you want to try to time the market. In my opinion, the "psychic friends" network is very helpful in this area.

2. The money for making trades in your IRA comes from the contributions to that IRA. If you're just starting, then $2,000 might not get you too far with a lot of trading activity. A few bad trades could quickly erode the $2k. Of course, if you do well or have a few years of contributions under your belt, then the trading costs may become less significant.

3. Purely for tax purposes, it definitely seems easier to do a lot of trading within an IRA. You don't have to keep track of what kinds of capital gains taxes you may owe because there aren't any.

I wonder what "industry" you could be talking about? You work in it. You're 23. You make around 70k. Could it be something to do with technology? Maybe even network or telecommunications technology?

Hope this helps.
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