AI
Saturday, April 29, 2006 9:25:32 PM
Hi Rich,
As you may know, there are a lot of mutual funds that can be traded in retirement accounts. But you have to check to make sure about the particular fee structures with your broker, and what they do and do not offer. I have a list of funds that are leveraged and that have both short and long positions, and I tend to stick with those. Sometimes I will shift something into a particular sector if I think the sector is ready for a substantial move.
The 3 fund families are Rydex, Profunds, and Potomac Funds. The "early redemption" fee for not holding 3 months or 6 months is virtually always waived by brokers for funds from these families. But if you call, the person answering the phone will usually give you the standard answer at first and say that "mutual funds not held more than 90 days will be penalized." Often, they are not aware at first of the exemptions.
Profunds has the most extensive offerings. Rydex has an interesting fund that exchanges among sectors according to some proprietary quantitative parameters, and it does well (5-star rating). Since mid-2004, it has returned about 53% compared to 33% for the $COMPX, and with lower volatility:
As you may know, there are a lot of mutual funds that can be traded in retirement accounts. But you have to check to make sure about the particular fee structures with your broker, and what they do and do not offer. I have a list of funds that are leveraged and that have both short and long positions, and I tend to stick with those. Sometimes I will shift something into a particular sector if I think the sector is ready for a substantial move.
The 3 fund families are Rydex, Profunds, and Potomac Funds. The "early redemption" fee for not holding 3 months or 6 months is virtually always waived by brokers for funds from these families. But if you call, the person answering the phone will usually give you the standard answer at first and say that "mutual funds not held more than 90 days will be penalized." Often, they are not aware at first of the exemptions.
Profunds has the most extensive offerings. Rydex has an interesting fund that exchanges among sectors according to some proprietary quantitative parameters, and it does well (5-star rating). Since mid-2004, it has returned about 53% compared to 33% for the $COMPX, and with lower volatility:
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