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  • AvatarAnne Bedian
    Participant
    Post count: 2

    Hi Sean,
    If you have any previous articles regarding IRA accounts & investing, can you please refer me to them? I am not clear what you mean when you say you warned us re IRA/401k accounts. Would love to learn about that.

    Sean HymanSean Hyman
    Keymaster
    Post count: 806

    Meaning, for at least a couple of years now, on this site and on Facebook, I’ve warned that being invested in an index fund or anything that somewhat tracked this overvalued market was in great danger of selling off, very deeply. I’ve warned in monthly newsletters and especially weekly videos to consider having high cash levels in those accounts (in a money market fund or stable value fund) instead of being in most mutual funds, at the time. When risks are high, so should cash levels be.

    Phil YumpingPhil Yumping
    Participant
    Post count: 34
    Sean HymanSean Hyman
    Participant
    Post count: 1831

    Thanks, Phil!

    AvatarAnne Bedian
    Participant
    Post count: 2

    Thank you both, but I think I was unclear. I guess I wanted to know regarding investments in stock through a regular investment account versus investments in stock using 401 account. Let’s say you have 20k to invest – which is a better way to invest – put into 401 first and then invest or invest through your trading account. And so, when you warn us re 401k accounts, does it also include the regular investment accounts?

    Sean HymanSean Hyman
    Keymaster
    Post count: 806

    In a 401k, you have tax deferment, and in some cases employer matching contributions to some degree. But, the trade-off is that you only have a few investments you can invest in, with most 401k administrator plans. A handful of mutual funds, etc.

    In a regular stock brokerage account OR an IRA at a stock brokerage firm, you can invest in most any individual stock, mutual fund, ETF, etc. that you wish. The IRA can be pre-tax or after-tax (more on that from your broker or CPA).

    LI directly makes recommendations for regular stock brokerage accounts and IRAs, etc. And I give my general/broad insights for 401k’s like cash levels and a mutual fund that tracks the S&P 500 for levels of interest for entries and a strategy as when to get back into it. That’s in the February monthly issue and in the last couple of weekly videos before this Thursday’s. Hope that helps.

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