http://www.thesunsfinancialdiary.com/personal-finance/key-differences-between-traditional-and-roth-ira/ Fri, 03 Feb 2012 17:42:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.thesunsfinancialdiary.com/personal-finance/key-differences-between-traditional-and-roth-ira/#comment-6550 The Sun Thu, 12 Apr 2007 16:59:58 +0000 http://www.thesunsfinancialdiary.com/2007/04/10/key-differences-between-traditional-and-roth-ira/#comment-6550 JAF, the answer to your question depends on how often you "play the market." The good thing about trading stocks in a Roth is that you don't have to pay taxes for all the capital gains you earned from trading. If you do the trading outside an IRA account, then you are responsible for taxes for the gain. On the other hand, the problem with frequent trading is that you also have to pay commissions for each trading. Doing it too often will eat your profits. IRA account is supposed for long term investment, thus frequent trading and paying fees every time isn't a long-term cost efficient strategy, in my opinion. JAF, the answer to your question depends on how often you “play the market.” The good thing about trading stocks in a Roth is that you don’t have to pay taxes for all the capital gains you earned from trading. If you do the trading outside an IRA account, then you are responsible for taxes for the gain. On the other hand, the problem with frequent trading is that you also have to pay commissions for each trading. Doing it too often will eat your profits. IRA account is supposed for long term investment, thus frequent trading and paying fees every time isn’t a long-term cost efficient strategy, in my opinion.

]]> http://www.thesunsfinancialdiary.com/personal-finance/key-differences-between-traditional-and-roth-ira/#comment-6468 JAF Thu, 12 Apr 2007 02:55:23 +0000 http://www.thesunsfinancialdiary.com/2007/04/10/key-differences-between-traditional-and-roth-ira/#comment-6468 There is something I am curious about though. I have a ROTH IRA with Scottrade and most of the money is invested in various mutual funds. But I have about $2000 in this account that I just started playing the stock market with, within this ROTH. Is using funds from a Roth account to play the market a bad idea as opposed to opening up a separate regular trading account? There is something I am curious about though. I have a ROTH IRA with Scottrade and most of the money is invested in various mutual funds. But I have about $2000 in this account that I just started playing the stock market with, within this ROTH. Is using funds from a Roth account to play the market a bad idea as opposed to opening up a separate regular trading account?

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