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Thursday, March 11, 2010
Seperate Investment Account
So I have decided that I will open up a serperate IRA account for investment ideas. As this is the only way I will mentally be able to hold investments. I can not convince my brain to do it in my IB account. It is registered as some conflict of interest in my brain. And the reason I want to do it in a IRA account is because this is just another layer of comfort for my brain. It does not mean however that I will not actively manage the positions. But I will be comfortable with tieing up capital that I do not need to access for a while. The goal would be to put $4,000 a year in this account. I currently have a 401k with work and I max that out and mostly use an S&P index fund and money market. For example in Febuary when we hit 1040 on the S&P 500 I moved everything from money market to S&P and have since made a quick 10.5% in my 401k. As I think we will move higher, I have set the sell zone of 1175-1200. I think it is possible for the market to make it to 1200 this year. But at the same time I still think that long term money should be managed as well and you should still have stops. 1130 on S&P is my signal to sell and move back to money market until I see opportunity again.
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As I mentioned above I transferred all my funds from money market to the S&P 500 index fund in my 401k. We have hit my first area to take profits. I initiated a transfer of 75% to back to the money market and am leaving 25% on the table. We will see if we can get the run to 1200 in the next few months.
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