Q. What does myIRAs.net do?
A. We want to help small investors to invest a part of their IRA money in the stock market to achieve long-term above average return. In addition,any investor who agrees with our investment strategy and is willing to follow IRA trading rules can also join.
Q. What is an IRA?
A. An IRA is an Individual Retirement Account. An IRA is a personal savings plan that provides income tax advantages to individual saving money for retirement purposes. There are 5 types of IRAs, but the most popular IRAs are traditional IRA and Roth IRA.
Q. Is it risky to invest IRA money into the stock market?
A. Any investment
carries risk. You could lose all of your money by investing into
the stock market. This will happen if the company you invested in
declared bankruptcy. But history has shown that equity investing
provides the best return over long period of time. Higher risk normally comes
with higher return. We do not encourage you to put all of your IRA
money into the stock market. But it does bring you good money if
you invest wisely. Take our investment result as an example. We have consistantly beat the market by big margisn and have achieved an average of 70%-plus annualized return since 2001-07. We made over 70%-plus retrun even during 2008-2009 fiscal year, the period wiht the biggest bear market in US stock market history. Also remember,
if the money is from a Roth IRA account, there will be no tax deduction
at all. You will keep all of your money when your retirement
Q. What are IRA trading rules?
A. If the IRA money is put into a brokerage account to trade stocks, the following trading rules apply:
1. An IRA account will be a cash account not a margin account. It means that you cannot borrow money to buy stocks.
2. An IRA account cannot short stocks. Of course, there are ETFs which we can buy to short market or specific sectors.
3. After a stock is sold, you have to wait for at least 3 days before you can use the proceeds to buy another stock. Or if you used the proceeds to buy another stock immediately, you will have to hold that stock for at least 3 days before you can sell it.
We, at myIRAs.net will add an additional trading rule: never buy penny stocks. This includes pink sheet stocks and ob stocks. Those stocks are not regulated, are subject to manipulate and carries much higher risks. Those stocks are not suitable for long term investment in general.
Q. How do you charge for your service?
A. One Month Special Introduction Offer of $49.95 and Yearly Service Plan: $480.00.
For detailed fee information, please go to our “Service Fees” section. You can also switch plans as you wish at any time.
Q. How do I cancel my subscription?
A. You can cancel your subscription at any time. Go to “Member Profile” page and click the “Cancel” button. That is all. No questions are asked, no person to talk. Canceling prevents future billings. You will still be able to login to the site for the duration of your membership. We do not issue refunds.
Q . How do we follow your “Buy” and “Sell” recommendations?
A. First of all, we are buy-and-hold investors. When we give a buy recommendation for a particular stock, we believe that it has a long-term investment value and is not for day trading purposes. In most cases, we will send our opinion to members in the evening so members will have enough time to do their own study. If our opinion is to buy a stock in the next day, it means to buy it at the open. It should be noted, however, that if the stock gaps up more than 5% in next day's open, do not chase it. Instead, you can always wait for a better price later. If the stock price continues gapping up for the whole day, just forget it. Most likely, the stock will pull back and return to its previous levels in the coming days after initial buy orders dry up. Occasionally we may send messages to our members during trading days if we find a good entry point for a stock in our watch list.
Q. Can I still buy into the stocks already in the portfolio?
A. After you become our member, you can look at all of our current holdings. If a stock's current price is lower than our purchase price, you got a better deal. If a stock's price has gone up but not too far (less than 5%), you still can take a position. If a stock has gained more than 10% since its purchase, it is better to wait for another buying opportunity. If a stock has been held for almost one year in the portfolio, be careful, we may sell it soon.
Q. Do you give any target price for the stocks in the portfolio?
A. We do have a target price in mind before investing in any equity. That target price is our one year goal for that stock under the assumption that all the information we gathered for that particular stock is still valid after one year. Remember, the target price is our one year price target. There will be bumps as the stock price gradually reaches toward our goal. We may buy and sell the same equity several times during the process to try to take advantage of price frustration to maximize our return. That is why we will not give our eventual target price to our members.
Q. Do you set up a stop loss after buying?
A. In most cases, the answer is NO. Instead, we may implement our multi-buy strategy. We will take our loss only in two situations:
1. We have hold a stock for more than one year and there is still no sign of recovery for that stock.
2. More information is released for one of our holdings and we have to re-evaluate the true value of that holding. If the result is negative, we may sell it for a loss. We have to carefully evaluate the news though. More than not, the bad news may be just the beginning for the stock's recovery. Remember, the best time to buy a stock is when no one wants to own it.
Q. Do you give answers to individual questions?
A. Members can always post their questions to us. But we will not offer personalized advice. If we feel that some question needs to be addressed toall of our members, we may put our answer into our commentary session.
Q. How is your model portfolio performance calculated?
A. We do not keep track of day-to-day portfolio performance. But we do keep track of our monthly and yearly model portfolio performance. At the end of each month, we will calculate the market value for each stock in our portfolio, add them together. That will be the total market values for all the stocks in the portfolio. Then, remaining cash will be added to form the portfolio value. Cash interest will not be added. However, dividend payment, if there is any, will be added into our portfolio. We will deduct $10.00 for each trade. Therefore a round trip costs us $20.00.
The formula to calculate monthly portfolio return will be as follows:
monthly G/L % = (Pc- Pp)/Pp x 100%
Pc - Portfolio value after the close of last trading day in current month
Pp - Portfolio value after the close of last trading day in previous month
The same formula is used to calculate the portfolio's yearly return.