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IRA Funds

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  There are several types of Individual Retirement Accounts
 
                         Traditional, Roth and Educational
 
 
(Also use the IRA Section for SEP and Keogh Plans)
 
The sharp corrections in the market since 2000 decimated many retirement accounts, causing losses of 30%, 40% or more. Many people had to delay their retirement or return to work to rebuild their portfolio.
 
The Fund Trading Performance Section shows when using actual and historical data that you would have seen substantial profit during this period. 
 
An active investing strategy supported by Fund Trading can be a superior strategy to control risk in volatile markets, compared to a Buy and Hold strategy.  
                                                                                                                     
Fortunately, from an investment perspective an IRA gives you the flexibility needed to implement nearly any Fund Trading Strategy, except one that uses margin. But leveraged Funds can be used to increase returns.
 
Deferred Taxes make IRAs the perfect investment vehicle for active management, since taxes on capital gains and dividends are not paid until you retire and start withdrawals.
 
With Mutual Funds you switch between Long and Short Funds. Buy Long when the market is going up and Short called Inverse or Bear Funds when the market is declining.
 
This allows you to profit in up or down markets. This may feel uncomfortable at first, but this is one of the secrets of the professional trader.
 
We will help you through the trading process with step by step instruction in the "How To Trade" section.
 
Mutual Funds are a great investment vehicle for IRAs. But you can also use the Simple Trading Method using Exchange Traded Funds with all of their advantages. But unlike Mutual Funds the only leverage amount available is 200%.  See the "How to Trade" section for instruction on how to use the Simple Trading Method.  
   
 
 
              "Leveraged Mutual Funds do Not charge you for Margin!"
 
Mutual Funds have the additional advantage of offering leveraged returns of 125%, 150%, 200% or 250%, without paying for margin.
 
This means their returns will be greater than the return of the Index Fund they benchmark. For example, if the Index it tracks increases 20% your 200% return Long type fund would increase 40%.
 
The Inverse or Bear Fund would move in the opposite direction when used to profit from a declining market. A 10% decrease in the Index would result in a 10% increase in the fund. Inverse or Bear Funds offer leverage too.
 
The Mutual Funds for the IRA Strategy are listed below. They are the same funds as listed in the Mutual Fund section. Visit the How To Trade / IRA Funds section to learn how to trade Mutual Funds for your IRA Strategy.
 
 

The following are descriptions of the available IRA types. If you qualify for an IRA, we strongly recommend taking full advantage of these retirement accounts. Normally contributions are made with pre-tax dollars with capital gains and dividends taxed deferred.

Traditional IRA

A Traditional IRA is established by an individual. Contribution limits are defined based upon annual income and qualified contributions are tax-deductible until you, or the beneficiary begins drawing upon the assets.
 
When contributions are withdrawn taxes would be based on your annual income. If you inherit an IRA you need to leave the account in your parent's name which will allow you to spread the withdrawals over your life expectancy. If you change it into your own name, the inherited amount is immediately taxable.
 
Additional contributions above your limit are taxable on a current basis, however, future growth is compounded tax-deferred until withdrawn. The benefit of an IRA is the initial tax deduction and the tax-deferred growth until it is needed or drawn upon.
 
The ability to deduct your contributions are based on income and whether or not you participate in an employee sponsored retirement plan, such as a 401(k). Generally, if you will be in a lower tax bracket after retirement, the Traditional IRA is a better investment vehicle then the Roth IRA.

Roth IRA

The Roth IRA was named after Senator William Roth and approved by congress in 1997. It differs from a traditional IRA in many ways.
 
Contributions are not tax-deductible; however, qualified withdrawals are tax free.
 
Once invested in a Roth IRA, you should never have to be concerned about paying tax on the money or its returns.

Limiting the advantages of this particular IRA is an annual income limit of $110,000 as a single filer or $160,000 as a married couple. The Roth IRA does not require you to take distributions until you require the funds; this is opposed to a traditional IRA which requires withdrawals and tax consequences beginning at no later than 70 ½ years of age.

If you are in a low tax bracket today and expect to be in a higher tax bracket at retirement, the Roth IRA may be a better choice for you. Review your situation with your accountant to decide which IRA is the most suitable.

Educational IRA

An Educational IRA is a savings fund that can be used toward helping pay for a child’s college expenses such as, tuition, fees, books, etc. The monies in this IRA can’t be applied to retirement expenses.
 
As long as the funds go toward the child’s education, the money grows tax free and can be passed along toward other college bound siblings.
 
After the age of thirty, funds remaining will be subject to taxes and perhaps a penalty.    
 
 
 
 
                 Recommended Mutual Funds
    
 
The following list of Mutual Funds can be used to implement the U.S. Fund Trading Strategies. We recommend investing as much as 60% of your portfolio in U.S. funds.
 
Visit the Exchange Traded Fund section for recommended International Funds. We recommend investing as much as 40% of your portfolio in International Funds.
 
 
After receiving a new Signal your Mutual Fund order should be placed at least two hours before the next market close. This gives you the flexibility to place the order the night before or first thing in the morning.
 
 
 
 

 Recommended Mutual Funds used for Buy (long) Signals 

                 
The Fund Trading System is designed to split your investment funds 50% / 50% between the Nasdaq 100 and Russell 2000. An alternative would consist of investing one third each in the Nasdaq 100, Russell 2000 and S&P 500.
      
Benchmark Index
Index 
Symbol
Fund 
Company
Fund Symbol Return Ratio
Nasdaq 100 NDX ProFunds OTPIX 100%
Nasdaq 100 NDX Direxion n/a  n/a
Nasdaq 100 NDX ProFunds UOPIX 200% 
Russell 2000 RUT ProFunds SLPIX 100%
Russell 2000 RUT Rydex RYMKX 150%
Russell 2000 RUT ProFunds UAPIX 200%
S&P 500 SPX ProFunds BLPIX 100%
S&P 500 SPX Rydex RYNVX 150%
S&P 500 SPX ProFunds ULPIX 200%
     
 
 
 

 Recommended Mutual Funds used for Sell (short) Signals

                                                
The Fund Trading System is designed to split your investment funds 50% / 50% between the Nasdaq 100 and Russell 2000. An alternative would consist of investing one third each in the Nasdaq 100, Russell 2000 and S&P 500.
        
Benchmark Index
Index
Symbol
Fund 
Company
Fund Symbol Return Ratio
Nasdaq 100 NDX ProFunds SOPIX 100% Inverse
Nasdaq 100 NDX ProFunds  USPIX  200% Inverse
Russell 2000 RUT ProFunds SHPIX 100% Inverse
Russell 2000 RUT ProFunds  UCPIX 200% Inverse
S&P 500 SPX ProFunds BRPIX 100% Inverse
S&P 500 SPX ProFunds  URPIX 200% Inverse
     
 
 
 
 
 
 
           Mutual Fund Trading Strategies for IRA Accounts
  
 Fund Trading provides IRA Model Portfolios with Step-By-Step
Trading Instruction in the "How To Trade / IRA Funds" section. 
 
           
Fund Trading includes (4) Trading Strategies to provide you
the right level of Return and Risk.
 
  Strategy A   Conservative   Long Only
  Strategy B   Growth   Long and Short
  Strategy C   Aggressive   Long with Margin
  Strategy D   Speculative   Long & Short w/ Margin
                        
Trading Strategy A is the most conservative, your are only in the market when the Trading System indicates a Buy Signal. You protect your principal in down markets by moving it into a secure interest bearing Money Market Fund or Government Bond Fund.
Trading Strategy B is designed for Growth by profiting when the market is going up or down. Over time profits have been shown to increase about 30% over Strategy A with a manageable increase in risk.
Trading Strategy C is more Aggressive. It is similar to Strategy A, you are only in the market when the Trading System indicates a Buy Signal, but with a leveraged Fund. You protect your principal in down markets by moving it into a secure interest bearing Money Market Fund or Government Bond Fund. Our performance results are based on 200% leveraged Funds, which doubles your potential for gains and losses. Leveraged Funds, like using margin, increases the risk of this strategy over Strategy B. Using a smaller percentage of leverage can greatly reduce your risk.
Trading Strategy D is considered Speculative. It is similar to Strategy B, you are in the market when it is going up or down, but with leveraged Funds. Our performance results are based on 200% leveraged Funds, which doubles your potential for gains and losses. Using leveraged Funds in up and down markets increases the risk over Strategy C. Using a smaller percentage of leverage can greatly reduces your risk. 
 
 

Below is an expanded list of suitable Mutual Funds that can be used with the Fund Trading System.
 
 
 
  
     Mutual Funds Grouped By Company Used for Buy (long) Signals
                                 
                
 
                              
         
Benchmark Index
Index 
Symbol
Fund 
Company
Fund Symbol Return Ratio
Nasdaq 100 NDX Rydex RYOCX 100%
Nasdaq 100 NDX Rydex  RYVYX  200%
Russell 2000 RUT Rydex RYMKX   150% 
S&P 500 SPX Rydex RYNVX 150%
Nasdaq 100 NDX  ProFunds  OTPIX 100%
Nasdaq 100 NDX  ProFunds UOPIX 200%
Russell 2000 RUT ProFunds SLPIX 100%
Russell 2000 RUT ProFunds  UAPIX 200%
S&P 500 SPX ProFunds BLPIX 100%
S&P 500  SPX ProFunds ULPIX  200%
Nasdaq 100 NDX Direxion n/a n/a
Nasdaq 100 NDX Direxion DXQLX 250%
Russell 2000 RUT Direxion DXRLX 250%
S&P 500 SPX Direxion DXSLX 250%
     
      
 
  
     Mutual Funds Grouped By Company Used for Buy (long) Signals
                                             
 
                                                   
         
Benchmark Index
Index 
Symbol
Fund 
Company
Fund Symbol Return Ratio
Nasdaq 100 NDX Rydex RYAIX 100% Inverse
Nasdaq 100 NDX Rydex  RYVNX 
200% Inverse
Russell 2000 RUT Rydex RYSHX   100% Inverse
S&P 500 SPX Rydex RYURX 100% Inverse
S&P 500 SPX  Rydex  RYTPX 
200% Inverse
Nasdaq 100 NDX  ProFunds SOPIX  100% Inverse
Nasdaq 100 NDX ProFunds USPIX 200% Inverse
Russell 2000 RUT ProFunds  SHPIX 100% Inverse
Russell 2000  RUT ProFunds UCPIX  200% Inverse
S&P 500  SPX ProFunds BRPIX  100% Inverse
S&P 500 SPX ProFunds URPIX 200% Inverse
Nasdaq 100  NDX Direxion DXQSX 250% Inverse
Russell 2000  RUT Direxion DXRSX 250% Inverse
S&P 500 SPX Direxion PSPSX 100% Inverse
S&P 500 SPX Direxion DXSSX 250% Inverse
                                 
 
 
Please visit the How To Trade / IRA Funds for step by step trading instruction.
 
 
 
 
 
 
                               Next Page – 401(k) Funds
 
 
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