daemon@decwrl.UUCP (03/01/84)
From: curium::dzekevich I concur with the comments that I have been hearing about IRA diversification. It does take a while to get there, but I think that it is a very sound strategy. I think that the best way to go is to open a full trading account with a stockbroker for your IRA. That way you can get into anything you want to and not have to worry about rollovers and changes or about having multiple IRA's to track or worry about certificates auto-renewing. There are many good vehicles for IRA's that let you diversify: a. The first year that the rules were changed so that everyone that works could open on, I bought into a Zero Coupon Bond Trust that locked in a 13.5% return for 7 & 1/2 years. The idea of the trust was to be diversified among many ZCB issues, and not just one. b. The second year I put the money into an IRS approved Real Estate Limited Partnership made for IRA's. Good choice. The fund owns many buildings and is approved for IRA's. (Be careful with limited partnerships. UNRELATED BUSINESS ACTIVITY IS TAXABLE to IRA's and non-profit institutions. UNRELATED means usually heavy leverage and oil type partnerships. Pick only approved (like Paine Webber's Property II) partnesrships for IRA's. This pertnership is paying income since it is optimized for rental income and not LTCG's. c. I keep the loose cash in a money market fund that is attached to the trading account. That way all loose and non-commited monies are earning money market rates. d. This year I am going through the Value Line listings and I am looking for good income stocks, paying from 13%-15%, and evaluating them for risk. (If, after the evaluation, I consider them too high a risk, I will look at the 11%-12% range.) I will not buy them in round lots, but I will diversify again within this group and select 2-3 issues that look good. So, good luck with your IRA's and being diversified. Regards, Joe Dzekevich Digital Equipment, Marlboro, Ma. decvax!decwrl!rhea!curium!dzekevich Thu 1-Mar-1984 08:41 SYS$BATCH