Investing your Roth IRA in future options can make you retire rich and early
Karen Zuba
May 12, 2007

It is a great secret some wealthy smart individuals are following. You can invest $4000 per year in Roth IRA. It is not tax deductible now but when you are ready to use it, it is not only free of tax, you can also assign it to your heirs. Talk to your accountant to see if you qualify investing in Roth IRA. In addition also ask you accountant the advantages of Roth IRA.

Roth IRA is nothing new. But what is amazing is that with a little prudence in commodities market you can double your retirement fund every year. You have to keep your Roth IRA with an individual trust. Then choose a commodity brokerage firm that can work with that trust. The trust will keep approximately $500 in a money market and then transfer the rest to your futures account. There are conservative ways of doubling your money.

If a commodity falls apart in price, you can own the future, write a deep in the money call six to nine months in expiration and also buy a put way below the current price to protect the extreme downside. The margin on the trade is miniscule. At any time you can liquidate the position if you see things going bad. Mostly, you will make decent money month after month. Make sure before you get into this, you read about the risks about futures and options trading. Futures trading are less risky than stock trading if you understand the use of options and derivatives.

For example, March 2008 Cotton is trading at around 56. You own a March 2008 cotton future, write a March 2000 cotton future 51 call for around 7.00 and buy a March 2008 cotton 49 put for 1.00. If cotton does not breach 51 on the downside, you will make 1.00 in nine months. That translates to $500 per contract set combination (future, call and put). The margin will be less than $250. On $250 you will make $500. That is a 200% profit in nine months. Please make sure you understand I mentioned cotton because it is totally washed out. Even if you lose a few trades, on the whole you will double your money every year.

The Roth IRA can make you rich and famous. It is a perfect vehicle for smart living.

Investing your Roth IRA in future options can make you retire rich and early
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