Wall vs Main Street

[Baychamp1]

Originally Posted by alphaman

IRA and the stock market ie oil is 2 different stocks. One is more of a risk and the other is a long term gain Mutual funds. Mutual funds and stocks oil r 2 different investments
Short term long term.

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Huh? Ok here we go, when you retire most people rollover their 401K into a traditional IRA, it may consist of individual stocks, mutual funds, bond funds, etc. and cash. Within this IRA you can buy & sell within the account, (as long as you have the cash in there to cover the buy order) without any tax implications until you take a distribution, which will be taxed as ordinary income, even if you don't sell the stock or mutual fund, but instead transfer it out into a brokerage acct. same difference. Whereas in a non IRA brokerage acct. you're trades held over 1 yr. are long term (taxed at 15 pct. for most people) less than a yr. is. taxed as ordinary income, but in the non IRA you're able to offset some of your gains with losses, can't do in an IRA.