Some time ago I commented on the ETF’s, stating that in the future they would carry a lot more weight than most would have thought. I think that’s come true enough. Back in 00 and 01, not a lot of people were playing with the ETF’s, but since then, several major institutions have begun using them for their hedging practices. Volumes, once anemic across the board, has recently
exploded.

The reason is really pretty simple. althought he ETF doesn’t mirror the underlying basket perfectly because of carry costs, interest rates, etc, it’s darned close enough, so if you have a “macro” view of something, the ETF’s are often much easier to gauge than say a basket of four or five individual stocks. This is what leads me to this topic, the “macro” view. How many times have you been right
about the direction of the market, yet the stocks you are holding fell in the day? Often I’d bet, it happens to all of us. But, with the ETF’s, if your macro view is correct, 99% of the time the ETF will trade in the similar direction.

Let’s suppose you feel that the chip sector is overdue for a pull back. A quick scan shows there are almost 50 stocks that could be considered “chips”. Are you to believe that you will be so adept that you will pick the ones that go down? Probably not. But, if you shorted the SMH, and the chip sector was weak overall, you’d be rewarded.

For short term moves, there isn’t a ton of profits to be gained from “most” ETF’s. An exception for example would be the BBH basket of biotechs. that thing often gains or loses 3 dollars in a day, making it a really fun trader. But that’s the exception really, as the DIA, or QQQ’s which track the DOW and NASDAQ respectively will often move just 50 cents to a buck, even on a big market
day. For some, that’s more than adequate returns and I agree they shouldn’t be scoffed at. But I find the ETF’s to be much more useful as swing trading vehicles or even semi long term holds.

Please use the ETF’s for your macro views folks. It’s easier to spot the trend than it is to spot the individual winners every time. I plan on using the ETF’s for a lot of the shorting we will do when the wheels come off the market. The charges aren’t much different than individual stock selection, and it’s easier to trade them. That’s not to mention the fact that options are available on them, AND you can buy or sell intra day, something you cannot do in any form of typical fund.

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An Ira is one of the greatest ways to save on taxes currently and accumulate money for the future.

For individuals three types of IRA’s will normally come under consideration.

The Traditional or Regular IRA
The Education IRA
The Roth IRA

Education IRA is now called the Coverdell Education Savings Account (ESA).

Education IRAs allow you to save for qualified higher educational expenses for a beneficiary. Parents and guardians are allowed to make nondeductible contributions to an education IRA for a child under the age of 18.

Contributions are allowed prior to the beneficiary turning 18, and contributions may not exceed $2,000 per beneficiary per year.

Contributions are made with after-tax dollars. There is NO deduction for the contribution. Withdrawals, however, are tax- and penalty-free when adhering to certain rules.

The traditional IRA allows you to contribute an amount and take a current deduction for the contribution. Withdrawal minimums must begin at a certain age and all withdrawals are taxable at the rate applicable when withdrawals are made. The main benefit is that any growth or gains remain free from taxation up to the point of withdrawal. Thus you would be getting tax-free accumulation.

The Roth IRA is perhaps the simplest - and potentially the most effective - sheltered account available.

Roth IRA has a tax structure different from any other IRA: contributions are after-tax (no deduction is available) but growth is tax-free; AND once you put your money in you NEVER pay taxes again.

Additionally, unlike a regular IRA, a Roth IRA does not require that you
start withdrawing funds at age 70 or any other time.

It’s more flexible…

Since you have already paid taxes up front, there are no minimum distribution requirements and since withdrawals are not reportable income, they won’t affect your adjusted gross income during retirement.

There are special techniques and strategies in creating and managing ANY IRA that create some huge benefits for the right person under the right circumstances.

If you’ve ever been successful investing in things other than stocks and bonds, you’ve probably wished that these investments could be included in your IRA, 401(k) or other tax-deferred retirement plans.

Amazingly to most people it’s possible to have retirement dollars in
vehicles such as:

Real Estate
Limited Liability Corporations,
Private Stock Offerings,
Trust Deeds,
Mortgage Notes,
Leases and Lease Options,
Joint Ventures,
U.S. Treasury Gold and Silver Coins,
Gold Bullion and many others.

While some investors are privy to the information above, most people are just clueless to the fact that they have a lot more avenues for investing than what their Wall Street Journal tells them.

If you are interested in exploring what your financial advisor knows that you don’t, including where they put THEIR money for strategic returns and investments, you can check out my free site on IRAs at http://www.irainfo4u.com.

More information about these strategies are also presented in my new book, “Scientific Wealth Strategies.”

C.C. Collins is a Wealth Building Advisor and Author of “Scientific Wealth Strategies” at http://wealthscientist.com Find more information at http://www.irainfo4u.com