Trading Within Your Retirement Fund
One of the many questions I get asked by people looking to take control of
their own retirement funds is "Can I trade myself". The answer to that is Yes
and No.
In each different country the law differs in the details, but this is a basic
outline of what you can normally do.
As ever, before you do any of this. Get a plan for your retirement. Buy the
best advice you can to put it together. Then if you want to do any trading get
a Trading Plan for that and then paper trade that plan for at least 3 months
before you put in only 5% of you fund into it.
Why do I suggest that you be so careful. Simple your retirement and that of
your families could be 40 years, if you retire at 55 and are quite healthy with
modern medicine and a good life style being active until 85 is not out of the
question and surviving until 95 is definitely possible. So do not go and screw
up your investment on a prediction from your mate in the bar who has just
started trading in the money markets based on a book that he picked up from the
ariport.
No take your time and take as much as you need.
But once you are happy that you have the plan and your trade system in place
then trading is a great way to use up to say 40% of your capital to actively
trade.
Here are so more things to consider from somebody who has been through it.
- Pay for the best advice you can
- Get a good mentor
- Go on a full course of education - class room or self taught
- Write out a trade plan, paper test it, when it works back test it or
get it back tested.
- If it works plan ever trade and trade your plan.
- Take out capital and put it into property or other investments.
- Only compound 50%
- If you make a loss get out as soon as you can and move on.
- If you make a small profit be happy.
OK all that said remember, you can claim for lots of the costs of courses,
computers, systems and other things from your retirement account, but again take
the advice from an Accountant who knows about this stuff prior to doing it.
Good luck and good trading and I hope the articles help.
