Trade stocks in my rollover IRA?

[One4g]

I currently am using my wifes rollover IRA to trade stocks with Fidelity, is this a good idea?  I pay 20 bucks per trade  I know way too much.  I have other retirement vehicles like my 401k, and both ROTHS.  This rollover will hopefully not be touched until when we retire  : In 20 years.  We currently have 28K and been up 3-8% per week (deducting commission fees) since last Dec.  What are the tax consequences?  Will I be taxed every year?  Can I withdrawal without penalty after 59 1/2?

Or play it safe and put it target retirement fund?

 

[MasterBlaster]

Well if my math is correct, Your $28k dollars compounding at 3 percent a week (==> 156%/yr) over say 20 years will give you a nestegg of $4 Billion (yes that's Billion).

So if your astute stock picking ability is correct then you'll live very well

However, I suspect that your stock picking isn't any better than the market so I would suggest that you get a diversified portfolio and leave it alone. There are lots of statistics that show that the more you trade then the less you'll make.

What are the tax consequences
There are no tax consequences of trading in a qualified account like an IRA. Taxes are only paid out when the money is withdrawn from the account.

Will I be taxed every year?

No. Only when the money is withdrawn

Can I withdrawal without penalty after 59 1/2?

Yes. As with any IRA