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INM Apr 2011 - How To Get Hurt Investing
Kenneth J. Gruneisen, Founder and Contributing Writer, www.CANSLIM.net
CANSLIM.net


The Individual Retirement Account (IRA), tax-sheltered retirement plan, was originally created in 1974 to assist individuals not covered by company pensions. Many of Investing For The New Millennium's readers do not remember what life was like back in 1974 for a working person in the US hoping to retire one day, but one might be able to make some fairly safe assumptions.   You had an over-spending government meddling in violent and extremely deadly matters overseas and taxing Americans very heavily each year for producing any gains. It was probably really difficult, or nearly impossible for many to build up substantial assets with the tax policy of the time. I've got charts on the wall in my office that show me the top marginal income tax rate was 70% and capital gains rate was 36.5%. Policy-makers up in Washington did something to make it easier, or we might say "a little bit less impossible", for more individuals among the huge wave of baby-boomers to build up some meaningful pool of investment savings for retirement.

I am a big fan of the IRA, and fortunately I did not dabble in the real estate market. If you did, I am just telling you how I see it, because a lot of people are being forced to make difficult choices in the challenging days that 2011 has in store. Should you dig into your IRA accounts to pay for an investment in some upside-down real estate purchases?  Considering that the government bailed out the banks, I'd say it seems a rather easy choice. Why jeopardize your secure future to take care of a current crisis the government has already solved with a loan of taxpayer money?  Times ahead look like they may be getting tougher and the rising tax rates and interest rates may make life much more challenging in the years ahead.  We might look back at 2011 just a few years from now and absolutely rave about how easy we had it, especially if looking back at prior decades might, in any way, give us a glimpse into what the future may hold.

Regardless, I am not trying to scare you. You might already realize that the toughest adversary you face when you are building for your future is the IRS; however, money in your IRA is safe from them, and safe from anyone who might sue you.  If you do not like to give money away unnecessarily to the IRS, you should be a huge fan of the IRA. If you are investing using a potent investment system that can yield huge returns, the tax-deferred growth of the IRA can work to your great advantage.

It is sometimes difficult to tell the difference between a threat and a warning. "Do as I say and you will not get hurt", sounds like a line that some gun-toting madman might use during an armed robbery. A different way of saying essentially the same thing is, "Don't do as I say and you WILL get hurt!"  The threat is what is coming from the tax man.  This is just a warning for you!  Don't invest in an IRA and you will get hurt much worse by the tax man when you are on the winning end after buying and selling. 

Of course, at Source Capital Group in Lighthouse Point, Florida we assist qualified investors in the management of accounts based on a very famous fact-based investment system.  Feel free to get in contact to discuss your situation, and hopefully it is not as ugly as some of the local investors we have heard from who did dabble in real estate in recent years.

About Kenneth J. Gruneisen, Founder and Contributing Writer, www.CANSLIM.net :
Kenneth J. Gruneisen has successfully completed the CAN SLIM® Certification Program.  Mr. Gruneisen became a Registered Representative in 1987 and his career includes experience offering personalized assistance to investors with more than a decade of experience as a Registered Principal managing a branch office.

The recommendations made by CAN SLIM® certified individuals are their own and may not be attributed to the CAN SLIM® Certification Program, William O'Neil & Co., Investor's Business Daily or their affiliates. The CAN SLIM® Certification indicates only that the individual has successfully completed the CAN SLIM® Certification Program. CAN SLIM®, William O'Neil & Co., Investor's Business Daily and any of their affiliates are in no way responsible for any loss or damage caused as a result of the services provided by these individuals.


Comments contained in the body of this report are technical opinions only and are not necessarily those of Gruneisen Growth Corp. The material herein has been obtained from sources believed to be reliable and accurate, however, its accuracy and completeness cannot be guaranteed. Our firm, employees, and customers may effect transactions, including transactions contrary to any recommendation herein, or have positions in the securities mentioned herein or options with respect thereto. Any recommendation contained in this report may not be suitable for all investors and it is not to be deemed an offer or solicitation on our part with respect to the purchase or sale of any securities.

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The recommendations made by CAN SLIM® Certified individuals are their own and may not be attributed to the CAN SLIM® Certification Program, William O'Neil + Co., Investor's Business Daily or their affiliates. The CAN SLIM® Certification indicates only that the individual has successfully completed the CAN SLIM® Certification Program. CAN SLIM®, William O'Neil + Co., Investor's Business Daily and any of their affiliates are in no way responsible for any loss or damage caused as a result of the services provided by these individuals.

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