apple stock – – Tradingsim

The Head and shoulders pattern is a reversal trading strategy, which can develop at the end of bullish or bearish trends. It is often referred to as an inverted head and shoulders pattern in downtrends, or simply the head and shoulders stock pattern in uptrends. In theory, they foretell the slowing momentum in either direction as the stock is unable to put in further highs or lows.

Traders like to trade head and shoulders patterns as the price targets are very predictable and the formation has an overall high success rate.

What do Head and Shoulders Chart Patterns Look Like?

The head and shoulders chart formation consists of three peaks, which develops after a strong bullish trend. The first and last peak are approximately the same height and are classified as the shoulders.

The second peak is the highest of the three and is classified as the head of the pattern.

Head and shoulders charts represent the transfer of power from the bulls to the bears in a topping pattern. In essence, it is a distribution pattern. Bulls who were buying the breakout (head), provided the liquidity for larger players to sell into, thus bringing the stock back down.

Please see the below illustration of a head and shoulders pattern top:

head and shoulders topping pattern — Head and Shoulders Top

What Do Inverse Head and Shoulders Chart Patterns Look Like?

Conversely, the inverted head and shoulders pattern is the head and shoulders bottom.

Instead of peaks, there are troughs. This reversal pattern develops after an extensive bearish trend and represents the transfer of control from bears to the bulls. Like the topping pattern, here bulls are using the breakdown as an opportunity to go long at lower prices. It could also give longer term bears the liquidity to cover their positions.

Below is an illustration of a head and shoulders bottom:

This is an outline of the inverse head and shoulders pattern. As you see, it is the mirror image of the head and shoulders topping pattern.

Identifying the Neckline in a Head and Shoulders Pattern

Every technical chart pattern has a trigger line, which provides confirmation for entering or exiting a trade.

For the head and shoulders pattern, the trade signal is called the neckline.

When you think about it, this name makes sense, because the neckline is directly beneath the head and shoulders. Get it?

When we identify the pattern on the chart, the first thing we should do is to draw the neckline.

So, how do we draw the neckline?

The proper way to set up your neckline is to connect the two peaks or troughs (depending on if it’s a top or bottom). Here’s an example with $CEI:

$CEI head and shoulders pattner example — $CEI head and shoulders pattern example

Please note the neckline isn’t always flat. If the peak or trough values are slightly different, then the neckline could have a slope.

We’ve tried to give you two examples of an early entry “Neckline A” and a later “Neckline B”. Both would work. It will depend on you and your style to outcome test head and shoulders chart patterns for the best entry.

What do Head and Shoulders Stock Patterns Foretell?

To determine the size of the formation, you should first set up the neckline as we just discussed.

Then, you take the mid-point of the neckline and draw a vertical line connecting the mid-point of the neckline to the top of the head. The distance between the neckline mid-point and the head is the distance we expect the stock to run after breaking through the neckline.

Please note, measuring price targets for head and shoulders and inverted head and shoulders will mirror each other. Again, the only difference is the formations are inverted.

How to Trade a Head and Shoulders Chart

When should you open a position?

When you identify the formation, you should start looking for the signal you need in order to enter the market. This signal is the moment when the price breaks through the neckline, for all intents and purposes.

When the neckline is broken, you should open a short position for head and shoulders tops and a long position for head and shoulders bottoms.

Granted, this is the old-school way to trade the pattern. Educators like Gil Morales teaches you to short into the pops on the right shoulder. He likes to find weaknesses into the overhead moving averages for good risk/reward.

If interested, he has a great book on short selling called Short-Selling with the O’Neil Disciples: Turn to the Dark Side of Trading.

Where should you place stop-loss orders?

This is a tricky question as traders’ opinions are pretty controversial regarding stop loss placement for the pattern.

Some traders claim that the stop loss should be loose and placed just above the head of the pattern.

A more conservative approach used by traders is to place the stop loss beyond the shoulder peak/trough.

We prefer placing the stop loss above the shoulder, as placing the stop above the head provides a 1:1 risk reward ratio. This isn’t very favorable odds.

When should you collect profits – Reverse Head and Shoulders Pattern Example 1

Again, the rule of thumb for this pattern is to determine the price target based on the depth of the pattern.

If this sounds confusing to you, have a look at the image below:

Price Target for Head and shoulders pattern — Price Target

This is a classic inverted head and shoulders scenario. This is the 30-minute chart of Apple. First, we have a bearish market followed by the creation of an inverted head and shoulders formation.

You can see the neckline – the brown line. Once the neckline is broken to the upside, we were able to set our price target based on the depth of the neckline to the trough of the head, which is represented with the black arrow.

After we establish our long position, we place our stop loss below the last shoulder as shown in the image.

After 24 hours, our minimum target is reached and we exit the position after the first bearish candle circled in green.

This inverted head and shoulders formation brings us a profit of $2.20 per share with the Apple equity.

While we exited this position near the target, you should not exit your position if the price continues to move in your favor.

Reverse Head and Shoulders Target Example 2

Having fun? Let’s go through another example.

Reverse head and shoulders Price target example 2 — Price Target

This is the 30-minute chart of Facebook.

After a strong downtrend, an reverse head and shoulders pattern develops. Again, we identify the neckline by drawing a brown line across the shoulders.

We open a long position with the first candle that closes above the brown neckline. Meanwhile, we establish our minimum target, which is illustrated with the black arrow.

After a few days, the price reaches our minimum target, but we stay with our long position until our bearish signal develops. For more information on bearish candlestick patterns as entry and exit signals, visit our guide to candlesticks.

A few hours later, a hanging man develops and we close our long position. From this long position, we were able to generate profits of ~ $4.00 per share.

When does the Head and Shoulders Pattern Fail

Although head and shoulders are considered one of the most reliable chart patterns for equity trading, like any other chart technique – it can fail.

Sometimes, we will receive our confirmation signal and the price does not reach our minimum target.

In other cases, the price will confirm the formation by breaking the neckline, and we will see absolutely no movement in our favor. These cases are not rare at all.

head and shoulders pattern failure — Pattern Failure

This is the 60-minute chart of Toronto-Dominion Bank. After a steady downtrend, an inverted head and shoulders formation develops.

We establish the neckline, price target, and stop loss, which are best practices for identifying the formation.

Unfortunately, after opening a long position, TD Bank begins to retreat below the neckline and ultimately trips our stop-loss order.

From this position, we accumulated a loss of ~52 cents ($0.52) per share. Although all the symptoms of an effective pattern are there, things didn’t work out.

This is why it is important to respect your stops!

Day Trading Head and Shoulders Tops

The first thing to consider when day trading this pattern is that it requires time. Unless you are on sub-minute charts or tick charts, you will likely need two days worth of bars or an early afternoon set up for the formation to fully develop.

Like any other trading setup, you will need more than just the chart pattern to be a success. Some of these items include proper money management and a firm understanding of risk on each trade.

Back to an intraday example, check out this head and shoulders chart of RPM.

Intraday Top on RPM — Intraday Chart Example

You can see the setup is the same as all the other charts previously discussed, even though the chart is on a 5-minute time frame.

The key point, again, is that you will need to let the trade setup. It’s not like an opening range breakout with 4 or 6 candles after a major gap. It takes time.

This pattern requires you to let the trade come to you, which takes extreme patience. The positive is that the reward from the trade is significant because the “cause” built up before the move creates a large “effect,” typically. There are many traders on both sides of the trade placing real money on the line.

The key is, after the break of the neckline, managing the trade properly. This means placing your stop above the recent peak or trough point. Also, it means adding to the position as it goes in your favor, all while managing a core position.

Key Summary Points on Head and Shoulders Chart Patterns

Head and shoulders tops and bottoms are reversal chart patterns.
It is one of the most reliable technical formations.
Inverted head and shoulders can reverse a bearish trend to bullish.
You will need to identify the formation, neckline, and stop loss levels.
Open a position when the price breaks through the neckline.
Advanced/Early entries can be taken on pops into the moving averages on the right shoulder
Place a stop loss order on the edge of the last shoulder.
The price target for the formation is equal to the depth of the neckline to the head of the formation.
When the price target is met, stay with the position until a contrary signal develops.
The pattern can fail, so don’t get too sure of yourself.
Use a global news source to understand the financial impacts outside of your market which can impact the trade.

How Can TradingSim Help

As with any strategy, we never recommend putting your money to work without testing the setup first. Ideally, you’ll want a set of as many simulated trades as possible in order to know your probability for success.

In other words, don’t take our word for it. Jump in the sim, scan for reversals both long and short, and track them in the analytics page. This way, you’ll know ahead of time what your realistic outcome expectancy can be.

Along the way, be sure to study which areas provide the best points of entry for your specific head and shoulders pattern strategy.

Here’s to good fills!

An IRA, whether a Roth or a traditional one, can be a great asset to an investor. However, if you change jobs, you may need to move that IRA to another account. If a person has a rollover IRA, they can move their older IRA to the new IRA. This TradingSim article will help readers learn how to roll over an IRA. This article will also help find the best stocks in an IRA.

What is a rollover IRA?

A rollover IRA is an IRA that can accept funds from an older IRA. Most rollovers happen when a person changes jobs, especially a self-employed person with a SEP. If they want to transfer their IRA, they can roll over their funds to another account.

How can you rollover an IRA?

There are many ways to rollover an IRA. Certified financial planner Marguerita Cheng from Blue Ocean Global Wealth says that while an IRA rollover seems easy, it involves more details.

“People think it’s straightforward. They retired, or they left their job, so they think they should do a rollover,” said certified financial planner Cheng.

However, Cheng warns that IRA holders can make mistakes with the rollovers.

“But there are mistakes that can happen,” said Cheng.

Cheng says account holders shouldn’t ask for a direct check payout from their previous IRA accounts. If an account holder receives a direct payout, the IRS taxes the funds at 20%. Cheng advocates that an account holder should specify that an old IRA should go to a new one.

“Make sure you’re specifying that you want to do a direct rollover,” said Cheng.

IRA to HSA rollovers are possible

A possible way to rollover IRA’s is to convert them to an HSA (health savings account. An HSA is a type of savings account that lets a person set aside money for health expenses.

Roy Ramthun is president of HSA Consulting Services. He says it’s important to make arrangements to rollover an IRA account to a HSA ( health savings account).

“I think it is better to make new contributions so you can take the tax deduction rather than using the IRA to HSA rollover, but if money is tight or you have large expenses, the rollover is a good way to take care of that situation,” said Ramthun.

Rita Assaf is a vice president of retail health savings accounts for Fidelity Investments. She said that HSA contributions can help people who want to convert their IRA’s.

“If you cannot afford to make new HSA contributions and need money for qualified expenses right away, then this funding method could help. This is especially helpful in the first year of owning an HSA and you need to access funds for a qualified medical expense early in the year before you’ve accumulated much in your HSA,” said Assaf.

Young people are at an advantage with IRA rollovers

Steven Hamilton is an enrolled agent who owns Hamilton Tax and Accounting in Grayslake, Illinois. He said that young people have an advantage in rolling over their IRA’s.

“Personally my favorite is to do the rollover at a very young age when they may not be able to make the contribution otherwise,” says Steven Hamilton, “This allows the funds to grow in the most advantaged way possible.”

In this COVID-19 economy with great uncertainty despite the stock market performing well, Raythun made an observation. He noted that a rollover from an IRA to an HSA could be helpful for unemployed account holders.

“This might be most helpful for someone who recently lost their job and is now on unemployment or facing COBRA premiums or large out-of-pocket expenses,” says Ramthun. “If cash is hard to come by, transferring money from an IRA to an HSA might be just the ticket.”

How to Roll Over a 401k to an IRA

Dominique Henderson, certified financial planner (CFP) and founder of DJH Capital Management said that 401k holders have options when they convert a 401k to an IRA. In the 401k plans, they are employer-provided plans. In contrast, IRA’s are individual retirement accounts.

“Often you have between six and 24 fund choices in a 401(k),” said Henderson. “With an IRA, you can choose individual stocks as well as funds—and even use alternative investments.”

Henderson advises IRA account holders to be aware of the tax consequences of a rollover.

“If you’ve received a tax benefit for your 401(k) contributions, you need to make up for that when you roll into a Roth, which is funded with after-tax money. You might owe a hefty tax bill today, so make sure you’re prepared,” said Henderson.

In addition to other financial advisors, Henderson also advises account holders to talk to tax professionals if they’re unsure of what action to take with a rollover.

“Talk to a tax professional if you’re rolling into an account with different treatment,” said Henderson.

Saving money with IRA rollovers is crucial

Henderson said that if an account holder doesn’t have a professional money advisor, they can put the IRA funds in low-cost index funds.

“If an investor doesn’t want to have those funds professionally managed, I would encourage [them] to use low-cost index funds, or maybe even a target-date fund. It’s going to reduce the probability of a negative outcome.”

“By law, you must have at least 30 days to decide what to do with your 401(k) when you switch jobs.”

More advice about 401k to Roth IRA conversion

Michael Cohen is a retirement specialist with Certainty Retirement Advisors in Belvidere. He noted that no taxes will be owed on a conversion if the amount withdrawn from one account is identical to the funds in the new account.

“A person does not begin to pay tax on that withdrawal until they actually take constructive receipt of the money, meaning that they keep the funds in their bank account for 60 days or more, or that they spend the money,” he said.

Roth IRAs can help self-employed day traders — 401k rollovers can be different from IRA rollovers

He added that an account holder must choose their own retirement account.

“If you feel like you want to keep taking risk with that money at age 62, then you can roll that 401(k) into an IRA with any brokerage firm,” he said. “Keep in mind that there will be no tax consequence to you for converting the 401(k) into an IRA, but that money will all be treated as ordinary income — 100% taxable — as you begin to spend that money in retirement.”

More advice on rolling over 401k to IRA

Mark Dunsmoor is the senior vice president of Regency Business Development. He has advice for clients who want to rollover a 401k to an IRA.

“If you wish to open a rollover account, you must be certain to open the account and then arrange for 401 (k) funds to be transferred directly to it,” said Dunsmoor. “If you take possession of this money first, it will be considered income and you will be liable for paying income taxes on it.”

In addition, Dunmoor wrote about the great affect IRA accounts have on retirement.

“IRA accounts have had a significant impact on retirement savings since its inception nearly 45 years ago,” said Dunsmoor. “An Investment Company Institute survey in 2015 revealed that Americans had 7.6 trillion dollars in IRA’s. You know that number has only grown since then.”

Timing is key for an IRA rollover

Henderson agrees with Cheng that IRA account holders should avoid direct payouts from accounts.

“In many cases, you’ll end up with a check that you need to pass on to your new account provider,” said Henderson. “Open your new IRA before starting the rollover so you can tell the old provider how to make out the check.”

SEP IRA — IRA rollovers can help account holders

The goal, Henderson says, is to avoid keeping the money in your personal bank account. In addition, Henderson also tells IRA account holders that they should act quickly to avoid taxes on direct payouts.

“You only have 60 days to complete the transaction to avoid it being a taxable event. It’s best to have everything set up before getting that check,” said Henderson.

Account holders should exercise caution

Assaf said IRA account holders should make an IRA transfer with a trustee-to-trustee transfer.

“The key is that the transfer should be made directly through a trustee-to-trustee transfer,” said Assaf. “You shouldn’t withdraw the money from your IRA first as that could lead to a taxable event and penalties.”

Assaf agrees with Ramthun that account holders should meet with HSA specialists to handle IRA rollovers.

“You should call our HSA specialists to handle the transaction to ensure the IRA withdrawal isn’t treated as a taxable event. He recommends that account holders “make sure that the money rolled over into the HSA is treated as an HSA contribution,” says Assaf.

Assaf also advises account holders to treat their IRA like an HSA contribution.

“The key is to ensure the money rolled from the IRA is treated as an HSA contribution,” she says. “Some HSA administrators may send the trustee-to-trustee check to you. And in this instance, you will want to make sure that when you send the check to your HSA administrator to include either a letter of instruction or deposit slip. She said it should be
“indicating that the check should be treated as an HSA contribution.”

Should an account holder rollover an IRA in an economic downturn?

While an account holder wants to rollover an IRA, some financial advisers advise against a withdrawal in this economic downturn. Sophia Bera is a certified financial planner. She’s the founder and CEO of Austin, Texas-based Gen Y Planning. In this volatile economy, she said there is a dilemma for account holders.

“Sometimes there isn’t a really clear option,” said Berra.

“That’s why this is challenging,” added Berra.

In addition to that advice, Bera says that account holders should focus on more immediate needs.

“Focus on more immediate cash flow needs and let your 401(k) plan sit for now,” advises Bera. As a member of the CNBC Financial Advisor Council, she advises IRA account holders.

“You might have more options a few months from now,” said Berra.

Berra also agrees with Henderson that index funds could be best for some account holders.

“You can choose a bunch of index funds or lower-cost funds,” said Bera.

Ivory Johnson is a CFP and founder of Washington, D.C.-based Delancy Wealth Management. He advises account holders to rollover their accounts to an IRA instead of a new employer’s 401k.

“When you have economic growth declining and no inflation — or deflation — there are certain sectors, like consumer staples, utilities that usually do well,” said Johnson.

“You may not be able to pinpoint that inside a 401(k),” added Johnson.

Find a reputable IRA manager for rollovers

Johnson advocates that account holders should consult a tax professional before an IRA rollover.

“Interview several,” Johnson said. He also recommends that in addition to their credentials, an account holder should trust their advisor.

“You have to trust the person and you have to know that they are competent,” he said.

Financial advisor Sam Davis is a partner with TBH Global Asset Management. He said that a rollover from a company’s retirement plan to an IRA can be beneficial to account holders.

“Rolling over one’s funds from a company retirement plan to an IRA certainly opens up the world of investment options,” said Davis.

“If one prefers an advisor to manage those funds, research their track record, compensation model, client references, and investment philosophy,” Davis recommends. “If an investor doesn’t want to have those funds professionally managed, I would encourage [them] to use low-cost index funds, or maybe even a target-date fund. It’s going to reduce the probability of a negative outcome.”

Financial Expert can help people decide how to make IRA rollover

With IRA rollovers, Davis agrees with Hamilton that young people have an advantage with IRA rollovers.

“If one is young and working with a small balance, rolling the old retirement funds into the new employer’s plan can make a lot of sense,” says Davis. “This often reduces fees, ensures the person is prudentially invested, and consolidates accounts versus having small accounts scattered at various firms.

Some advisors want 401k rollovers into IRA’s

Berra wants account holders to rollover old 401k accounts into a new IRA.

“The market is down, so it might be a good time to put that money in now to have that growth on that money,” said Berra.

In addition, Berra said that the funds can be spread out.

“I’m a fan of having a little bit of money in different taxable buckets,” added Berra.

Melissa Brennan is a financial planner with ARS Private Wealth in Houston. In contrast to other financial advisors, she wants account holders to hold back on rollover their IRA’s.

“Someone might lose their job and want to roll over their 401(k) to an IRA. She said that “they underestimate how long they’re going to be unemployed” and may need those funds for emergencies.

What do financial advisors say about rollover IRA’s?

Dan Moisand is a financial advisor with Moisand Fitzgerald Tomayo. He gave detailed IRA rollover advice to a person asking for IRA rollover advice.

First, he spoke about the details of a rollover.

“A “rollover” IRA attaches to a traditional IRA. Most people do not split the contribution because they prefer the tax treatment of one over the other. But you can split the $7,000 between a traditional IRA and a Roth in any proportion you like as long as your income fits the eligibility criteria,” said Moisand.

Next, Moisand spoke about the tax implications of an IRA rollover.

“There is no tax deduction for a Roth contribution, but earnings can be tax free when distributed. If your Modified Adjusted Gross Income (MAGI) for 2019 is under $122,000 (single filer) or $193,000 (joint filers), you can choose to put all $7,000 ($6,000 regular contribution limit + $1,000 catch-up contribution. That’s for being over age 50) into a Roth IRA. Above those income limits a partial contribution is permitted. If your MAGI is above $137,000 as a single or $203,000 as a couple, no Roth contribution is allowed,” said Moisand.

In addition to that information, he added more insight.

“There is no maximum MAGI limit for contributing to a traditional IRA. But earnings are taxed as ordinary income when distributed. However, there are income limits that affect whether you can deduct the contribution to the traditional IRA. That can change “if you or your spouse participate in a qualified plan like a 401(k)”. If neither of you are a participant, whatever you contribute to the IRA is fully deductible,” said Moisand.

“These days, for most taxpayers, the designation of an IRA as a rollover IRA is not important but here are two situations in which the designation matters.”

What are some IRA rollover rules?

In addition to that advice, the expert also made more comments.

“First, some employer-sponsored qualified plans like 401(k)s will only accept incoming rollovers of money that was in another qualified plan or a rollover IRA containing only money from a qualified plan. If a roll-in to a new qualified plan is not in your future, contributing to the rollover IRA should not be an issue but if you want to preserve the rollover status, just open a second IRA and contribute to that,” said Moisand.

In additon to that advice, Moissand offered more guidance.

“Second, in some states IRAs provide less creditor protection than applies to qualified retirement plans like 401(K)s. Keeping funds rolled out from a qualified plan in a rollover IRA segregated from other IRA assets can preserve the more extensive creditor protection of the qualified plan,” concluded Moisand.

What is the timeline for an IRA withdrawal?

While an account holder has some time, they have to act quickly for an IRA withdrawal. FINRA, the government overseer of broker-dealers, said account holders have a limited time.

“By law, you must have at least 30 days to decide what to do with your 401(k) when you switch jobs,” said FINRA.

In addition to FINRA, financial expert Lynn Brenner offered advice to a client.

“So what is a 60-day rollover? It’s what happens when you take an IRA distribution on which you don’t owe taxes because within 60 days you deposit the entire amount back into an IRA. The 60 days is a grace period in which you can replace an IRA distribution that you took by mistake or that you used as an emergency loan to yourself,” said Brenner.

In her advice column, Brenner also noted that the time restraints of IRA rollovers.

“You can only do one 60-day IRA rollover every 12 months, regardless of how many IRA accounts of how many IRA accounts you have. If you do more than one, any additional rollovers are treated as taxable income,” said Brenner.

In addition to that advice, Brenner offered more guidance.

“And if you redeposit an over-the-annual-limit rollover in an IRA, it’s treated as an excess contribution. She noted that the contribution is subject to a 6% annual penalty until you withdraw it,” added Brenner.

Should a person rollover an IRA during the economic downturn?

In this time of economic uncertainty, some financial advisors say that rolling over a 401k into an IRA could be beneficial for people who find themselves unemployed. Bobby Glotfelty is a senior licensed financial professional with Series 7, 24, and 65 licenses at Betterment. He noted that there has been an increase in 401k rollovers.

“We have seen a relatively large uptick of people rolling over 401(k)s into their IRAs,” said Glofelty. “A lot of these cases are people who are no longer employed or are still looking for employment.”

Glofelty noted that moving from a 401k to an IRA gives account holders more options.

“By moving into an IRA, you generally have more investment options than you would with a 401(k). Often, 401(k)s restrict you on what you can invest in,” said Glotfelty. With more investment options, like index funds and ETFs, you can invest more specifically to your goals.”

“By switching to an IRA, a lot of times you’ll find lower fees,” said Glotfelty. “It’s easier to figure out the fees you actually pay within an IRA.”

Glofelty also said that a rollover to a new employer’s plan doesn’t have to be so difficult.

“You can always roll your IRA assets back into your new employer’s 401(k),” Glotfelty says.

Gloefelty also says that 401k rollovers can help retirement account holders.

“In almost all cases, rolling retirement funds over to an IRA makes sense,” said Glotfelty.

Fidelity changes IRA rollover rules

Fidelity is a IRA provider that offers changes to its IRA rules to ease rollover rules. Dave Gray, head of workplace retirement offerings and platforms, spoke about the changes.

“Our goal is to be a market leader,” he says. “Most 401(k) recordkeepers are still urging participants to roll over once they leave.”

He said Fidelity won’t force Fidelity customers to turn old 401k’s over to IRA’s.

“It’s their choice,” said Gray.

Are IRA rollovers necessary?

Scott Smith is an analyst with Boston-based Cerulli Associates. Smith said that IRA rollovers have evolved and may not even be always necessary.

“Fidelity wants to be best in class,” Smith says. “Retirement recordkeeping is a big business. They won’t shun rollovers. But they want to let clients know [when] the best outcome is to stay in the plan… they’re still getting all of the advice.”

“Employers’ attitudes are changing and they are now more comfortable allowing people to keep their assets in the 401(k) plan even after they’ve left the firm.”

Randy Long is principal at SageView Advisory Group LLP in Irvine, Calif. He said that some account holders may want to keep their current retirement accounts.

Some financial experts advocate not making IRA withdrawals

“We’re seeing more and more participants, even after retirement, who leave their money in the plan,” said Long. “We still consult them. But they’re getting institutional pricing on those funds. If they roll them to an IRA, they don’t get the same institutional pricing.”

Gray notes that some account holders think 401k accounts are cheaper to keep in the long run.

“Some of the conventional thinking that 401(k) plans are cheaper than brokerage accounts continues to evolve,” Gray says.

Demographic changes causes Fidelity rollover changes

Mike Alfred is co-founder and CEO of Digital Assets Data Inc. He said the IRA rollover change at Fidelity is probably because of demographic changes.

“This feels like a natural evolution driven by demographics. The average 401(k) participant is getting older and approaching retirement,” Alfred says

Smith says that financial advisors have a leveling of fees that have to conform to compliance.

“I think firms have worked to level revenue regardless if it’s an IRA , or if participants stay in the plan. That way, they can minimize the potential for conflict of interest,” Smith says.

Gray says that retirees can have rollovers to IRA’s instead of depending on 401ks.

“Not all plans are designed to permit partial withdrawals or systematic retirement income withdrawal payments from their retirement plan,” said Gray.

Fidelity offers more flexibility for IRA rollovers

Gray said Fidelity’s retirement accounts can help account holders.

“Our solution now allows plan sponsors to offer a wide-range of withdrawal types and flexibility for participants who choose to leave their savings in the plan after retirement: a digital end-user experience, a customizable cash flow withdrawal strategy and a suite of dedicated retirement income funds, all of which seamlessly integrate into a company’s workplace savings platform,” said Gray.

Fidelity added in a statement that the plan will help retirees.

“The underlying exposures include a diversified mix of core and extended asset classes for a product specifically designed for customers in retirement seeking current income which differentiate this retirement income product from a standard all passive target-date product,” according to a statement.

Smith said that a retirement plan depends on a person’s individual needs.

“There are people who want more customized investments than they’d find in the 401(k) plan, which is designed for the masses,” he adds.”If you’re higher-net-worth, you need an IRA rollover with more [options].

Advice for retirees on IRA rollovers

Carolyn McClanahan is a certified financial planner at Life Planning Partners in Jacksonville, Florida. She had advice for a retiree couple on their IRA rollover questions.

“Since you’re both in your 60s, if you want to move your 401(k) money to a Roth IRA so that you can take out that money penalty-free, you don’t have to make a move at all. The 10% early withdrawal penalty applies to 401(k) account owners who are under age 59 ½, so you would not be penalized for taking money out. However, you will have to pay taxes as you withdraw the 401(k) money. With a Roth IRA, you can make tax-free withdrawals,” said McClanahan.

“One option is to withdraw your 401(k) over time to reduce the tax hit, McClanahan said. Another option is to do a 401(k) rollover into a traditional IRA. “Often, workplace 401(k)s charge fees to make withdrawals, plus you often have to go through an administrator to get distributions. IRAs at self-directed brokerages don’t have these types of issues,” continued McClanahan.

McClanahan also spoke of a third option for the retirees’ accounts.

“The third option is rolling all of the 401(k) money into a Roth IRA. Just keep in mind, you’ll “have to pay taxes on the entire conversion in one year, which can be pretty hefty,” McClanahan said.

No matter what IRA holders do with their accounts, here are five stocks that are the best to have in IRA’s.

1. Amazon the top pick for IRAs

Amazon( NYSE:AMZN) had an incredible Q3 2020 with net sales increasing 37% to $96.1 billion in the third quarter.

“Two years ago, we increased Amazon’s minimum wage to $15 for all full-time, part-time, temporary, and seasonal employees across the U.S. and challenged other large employers to do the same. Best Buy and Target have stepped up, and we hope other large employers will also make the jump to $15. Now would be a great time,” said Jeff Bezos, Amazon founder and CEO.

Amazon stock is a top choice for IRA rollover stock

“Offering jobs with industry-leading pay and great healthcare, including to entry-level and front-line employees, is even more meaningful in a time like this, and we’re proud to have created over 400,000 jobs this year alone. We’re seeing more customers than ever shopping early for their holiday gifts, which is just one of the signs that this is going to be an unprecedented holiday season. Big thank you to our employees and selling partners around the world who’ve been busy getting ready to deliver for customers this holiday,” added Bezos.

Amazon has been a COVID-proof stock and is a great addition to IRA holders’ accounts.

2. Proctor and Gamble

Proctor & Gamble (NYSE:PG) stock has soared during the pandemic. The maker of Clorox wipes had great growth. Jon R. Moeller is the Vice Chairman, Chief Operating Officer and Chief Financial Officer. She spoke about the Q3 2020 results.

“Fiscal year-to-date 6% organic sales growth; 16% core earnings-per-share growth; over 100% adjusted free cash flow productivity building share. Just two days ago, we announced a 6% increase in our dividend, reflecting both of these results and the confidence we have in our future. This was the 64th consecutive annual increase and the 130th consecutive year in which P&G has paid a dividend. So that’s January through March and fiscal year to date, very strong results in very difficult conditions,” said Moeller.

Proctor and Gamble is a top stock for IRA accounts.

3. Apple

In addition to Proctor and Gamble, Apple( NASDAQ:AAPL) stock is a strong one for IRA holders.

Apple stock a good option for IRA rollovers

CEO Tim Cook spoke about the company’s Q4 2020 revenue of $64.7 billion.

“Apple capped off a fiscal year defined by innovation in the face of adversity with a September quarter record, led by all-time records for Mac and Services,” said Tim Cook, the company’s CEO. “Despite the ongoing impacts of COVID-19, [the company] is in the midst of our most prolific product introduction period ever, and the early response to all our new products, led by our first 5G-enabled iPhone lineup, has been tremendously positive. From remote learning to the home office, Apple products have been a window to the world for users as the pandemic continues, and our teams have met the needs of this moment with creativity, passion, and the kinds of big ideas that only Apple can deliver.”

CFO Luca Maestri added more information about Apple’s strong Q4 2020 revenue.

“Our outstanding September quarter performance concludes a remarkable fiscal year, where we established new all-time records for revenue, earnings per share, and free cash flow, in spite of an extremely volatile and challenging macro environment,” said Luca Maestri, Apple’s CFO. “Our sales results and the unmatched loyalty of our customers drove our active installed base of devices to an all-time high in all of our major product categories. We also returned nearly $22 billion to shareholders during the quarter, as we maintain our target of reaching a net cash neutral position over time”.

Apple is a top holding in an IRA holder’s account.

4. Google

Google parent Alphabet (NASDAQ:GOOG) had positive Q3 2020 earnings with $38.1 billion. Alphabet’s CFO, Ruth Porat, spoke about the results.

Google stock is a strong stock to add to IRA rollovers

“Total revenues of $46.2 billion in the third quarter reflect broad based growth led by an increase in advertiser spend in Search and YouTube as well as continued strength in Google Cloud and Play,” Ruth Porat, Alphabet’s chief financial officer, said in a release.

Google is a solid holding in an IRA rollover.

5. Tesla

While Tesla (NASDAQ:TSLA) is a controversial company, Tesla has proven to be a lucrative holding for IRA’s. Tesla CEO and Space X founder Elon Musk spoke about the electric company’s Q3 2020 results.

Tesla stock can be an interesting addition to an IRA rollover

“So Q3 was our best quarter in history. We achieved record production and deliveries, record revenue, record net income, both GAAP and non-GAAP, and record free cash flow of $1.4 billion,” said Musk.

Tesla’s chief financial officer, Zachary Kirkhorn, also spoke about the positive results.

“Overall, our financial health continues to rapidly improve with Q3 being another great quarter on nearly all dimensions, as Elon has mentioned. On net income, we achieved our fifth sequential quarter of profitability, our best net income, and nearly double-digit operating margins,” said Kirkhorn.

No matter how an account holder rolls over an account, all the above stocks are good holdings for an account.

IRA rollovers can help save money

IRA rollovers can be an effective way to save money during job changes. With TradingSim articles, an account holder can find the best options to handle their money for the future.

Having a Roth IRA can be beneficial to account holders. However, if an account holder wants to make a withdrawal after they start investing, there are certain rules they have to follow. This TradingSim article will help people determine how they can make IRA withdrawals, even if they have a backdoor IRA. This article will also help Roth IRA owners whether they’re employed with a company or have a small business. This article will also highlight 10 stocks that Roth investors can add to invest with their accounts.

What are the rules for a Roth IRA withdrawal?

With the COVID-19 crisis, many people are having financial difficulties. Many people want to withdraw from their accounts to pay bills or take care of other expenses. When an account holder wants to make a withdrawal from their Roth IRA, they can easily make that choice. Financial expert Andy Robinson noted that account holders can make Roth IRA withdrawals.

“Your money isn’t untouchable. When you contribute to an IRA, your money isn’t locked away in some unattainable place. It’s not as easy to access as your checking account, but it is accessible,” wrote Robinson.

Robinson also noted that there are times that people can make withdrawals.

“I know that experts [say] “Don’t touch your retirement savings,” but there are a lot of exceptions where you can actually use that money if you run into real problems. It’s not locked up forever. Yes, you will have to pay some penalties on it, depending on how you’re using it, but if you need that money, it’s there, and it could be a safety net,” wrote Robinson.

What are the penalties of early Roth withdrawal?

If a person wants to make a Roth withdrawal, there is one benefit. Robinson noted that there are no penalties for early withdrawals.

“It’s also worth noting that if you use a Roth IRA, you can withdraw any contributions from it at any time, penalty-free,” wrote Robinson.

Some financial advisors say not to make Roth withdrawals

While some financial experts say it’s OK to make Roth withdrawals, others disagree. Riley Poppy is a financial planner and owner of Ignite Financial Planning in Seattle. He says that before making Roth withdrawals, account holders should try other options.

“Evaluate a personal loan, depending on what type of interest rate you might build a qualify for,” said Poppy.

Poppy also says that people should also try liquidating other accounts first.

“If you have investment accounts, you should think about liquidating taxable accounts first. traditional IRAs and 401(k)s second, and Roth IRAs last,” said Poppy.

“Consider taking money first from pre-tax accounts or traditional retirement accounts before Roth IRA accounts,” added Poppy..

He said that there’s more flexibility to withdrawals from other accounts.

“You have a little bit more flexibility since you can take out different shares. and you can really control the tax consequences a little bit better,” said Poppy.

Consulting a financial advisor is key to Roth

While Poppy doesn’t recommend Roth IRA withdrawals to his clients, he does see the advantages of Roth IRA withdrawals.

“If taking from a Roth IRA, it can be beneficial since you can access your basis or contribution tax-free without penalties,” said Poppy.

Poppy notes that whatever decision account holders make, they should consult a financial advisor.

“Input from a good CPA and a good financial planner is really helpful. [They can help] you model it out in terms of what the impact long-term will be,” said Poppy.

Poppy said that account holders should consider if they replace the funds they’re withdrawing from Roth IRA’s.

“The key thing to remember is that you are reducing your future retirement income. Do you have a plan to replenish that?” said Poppy.

Can a Roth IRA withdrawal buy a home?

If a person needs extra money, they can use Roth IRA withdrawals to buy a home.

Eric Roberge is the CEO and lead advisor of Beyond Your Hammock, a a fee-only financial planning firm. He noted that Roth withdrawals can be used to purchase a home.

“If you no longer need your Roth IRA money for retirement, then you may be able to tap the account to generate the cash needed for the purchase,” Roberge says.

Jeffrey Levine is a certified public accountant (CPA) and the director of advanced planning with Buckingham Strategic Wealth. He said that if a person can take Roth withdrawals to buy a home with certain requirements.

“As long as your Roth IRA has been established for at least five years, you can use that money penalty-free for a home down payment. as long as it qualifies as a first-time home purchase,” said Levine.

“The nice thing about Roth IRA withdrawal is that the contributions you originally make can be withdrawn for anything. at any time without penalty. It’s when you get into the earnings that you run into trouble, ” said Cohen.

While a person can use the funds to buy a home, Cohen notes that “even if you keep contributing to another retirement account, taking money out of a Roth to buy a home incurs opportunity cost”.

Eric Roberge is the CEO and lead advisor of Beyond Your Hammock, a fee-only financial planning firm. He notes that a Roth withdrawal can be detrimental to account holders.

“If you’re using the Roth because that’s the only source of funding you have to make the purchase, that might be a red flag. If you’re stretching yourself financially to buy a house, then buying might not be the best idea,” said Roberge.

Roberge adds that a Roth withdrawal shouldn’t dip into an account holder’s savings.

What is the difference between traditional and Roth IRA withdrawals?

While both traditional and Roth IRA’s are both retirement accounts, there are differences between the withdrawals. In a traditional IRA, there are no penalties to withdrawals unless a person makes the withdrawal before they’re 59 1/2. Mike Piershale is president of Piershale Financial Group. He said that while there are penalties for traditional IRA withdrawal, there are exceptions.

“On a traditional IRA, generally you can’t withdraw until 59 ½, although there are all sorts of exceptions,” said Piershale.

Some of the exceptions include medical expenses and disabilities.

While he doesn’t advocate early withdrawal of Roths, he said waiting too long for a withdrawal is a mistake, too.

“When you retire, often people have what I call this ‘window of opportunity,’ where they have low-income years,” said Piershale.

Piershale said the first years of retirement are a good time to convert funds from a traditional IRA to a Roth. He said that an account holder shouldn’t convert too much or else they will get bumped up to a higher tax bracket.

“Convert just enough to keep you in the same tax bracket,” said Piershale.

With a traditional IRA, an account holder has to make required minimum withdrawals (RMD’s) at 70 1/2. Leslie Thompson is a certified financial planner at Spectrum Management Group. She said that account holders should consider their individual accounts before making withdrawals.

“You have to look at accounts collectively and individually. Each account can have its own distribution amount. [The RMD] is where a lot of mistakes happen,” said Thompson.

Don Chamberlin is the president and CEO of The Chamberlin Group. He advises account holders to make withdrawals when they’re in a low-income tax bracket.

“Because you’re taking money out early, your RMD at age 70 ½ will be less. The lower RMD could then result in lower taxes. That’s a strategy we use quite often because many people have a good portion of their assets in qualified retirement plans,” said Chamberlin.

If older account holders make early withdrawals, Thompson said it may affect Medicare payments.

“It has implications for what you pay for Part B premiums,” said Thompson. “Higher-income people pay more,” added Thompson.

Roth IRA withdrawals have more options for account holders

While traditional IRA holders face penalties, Roth IRA holders don’t face as many penalties. If an account holder had an account longer than five years, have a medical emergency, or are a first-time homebuyer.

CARES Act helps make Roth IRA withdrawals easier

The passage of the CARES (Coronavirus Aid Relief and Economic Security) Act in March enabled account holders to make premature Roth IRA withdrawals. Dara Luber is the senior manager of retirement product at TD Ameritrade. She noted that with the bill’s passage, there are no required minimum withdrawals in 2020.

“One of the biggest provisions of the CARES Act is that there are no required minimum distributions (RMDs) for 2020. If you don’t need to take the money, you won’t have to,” said Luber.

Luber notes that there are penalty-free withdrawals if a person has been affected by coronavirus.

“Normally, you’d need to be at least 59 1/2 to take penalty-free withdrawals from your accounts,” said Luber. “However, under these rules, if you, your spouse, or a member of your family has been impacted by coronavirus, you may be able to take out money without paying that 10% penalty as long as you do it by December 31, 2020.”

Roth IRA withdrawal can benefit account holders

Mat Sorenson is the CEO & Attorney at Directed IRA & Directed Trust Company. He explained the new Roth IRA withdrawal rules.

“The new law increases the dollar amount you can loan yourself from your own 401(k) from $50,000 to $100,000 and also creates a penalty-free early distribution rule whereby IRA or 401(k) account owners under age 59-and-a-half can take a penalty-free retirement account distribution of up to $100,000,” wrote Sorenson.

Financial expert Michelle Singletary noted that people can repay the loan withdrawals within three years.

“You can repay all or a portion of the distribution within three years, and the repayments will not be counted toward the annual contribution limits”, said Singletary.

In the bill, seniors over 72 are also exempt from required minimum distributions.

“Additionally, the waiver covers the first RMD, which individuals may have delayed from 2019 until April 1, according to a summary of the Act’s provisions by Fidelity Investments,” noted Singletary.

Relaxed limits on Roth withdrawals are key in COVID-19 era

Financial expert Bill Biscoff noted that there are also no limits on how the COVID-19 related IRA withdrawal is used as well.

“In effect, the [CARES ACT] allows you to borrow up to $100,000 from your IRA(s) and repay the amount(s) any time up to three years later with no federal income tax consequences. And there are no limitations on what you can use [coronavirus-related distribution] funds for during the three-year period,” said Bischoff.

The “CARES Act” relaxes the rules on tapping retirement accounts, but only up to a $100,000 cap. If you take more than that, you’ll be subject to the old familiar tax and penalty rules.

If you have a Roth IRA, you have already paid income tax on that money, so any withdrawal won’t be subject to taxes now. In other words: get “post-tax” money before you tap into any “pre-tax” money.

Financial expert Suze Orman says Roth IRA withdrawals may not be wise

While many people may want to make Roth IRA withdrawals for extra money, financial analyst Suze Orman advises against that decision.

“If you take the money out, you’re racking in a 20-some percent loss right now, and you’re going to pay income taxes on that money, which will be another 20% or so,” said Orman.

Saving money with Roth IRA withdrawals is crucial

Orman advises Roth IRA holders not to take the Roth funds out before the stock market rebounds.

“If you take that money out and spend it, if you’re not frugal, if you’re just still living your lifestyle on some level, you will miss the best opportunity and the best time to have your money in the market that there’s ever been in about 10 years,” added Orman.

Top 10 Stocks for Roth IRA investors

1. Apple

While Orman argues that the stock market will rebound, here are 10 stocks that can be a good investment for Roth IRA’s. Apple (NASDAQ:AAPL) stock should rise after the launch of its latest iPhone.

Analyst Jim Suva, senior tech analyst at Citi, is bullish on Apple stock.

“If we look at year to date, the stock has done extremely well. In fact, it has outperformed the Nasdaq, the S&P 500, the broader markets, it has rallied. … Simply put, Apple during this pandemic is generating a tremendous amount of cash flow. They’re inventing, they’re coming out with new products and … they’re hiring. A lot of industries are laying off people and doing furloughs and reductions of … hours of workers, we’re actually seeing that Apple is hiring,” said Suva.

“That means they’re coming out of the pandemic stronger and importantly, the products that you’re showing that Apple announced are going to be ready and on the shelves and available in large quantities for the holiday shopping season and that’s very important,” added Suva.

Joanna Stern is the personal technology columnist at The Wall Street Journal. She notes that the latest iPhone will help Apple reach more consumers and raise its stock.

Apple’s new products will help stock rise

“What is the benefit for normal consumers? Where are they going to feel the faster speeds? And regardless of if everything works perfectly, right, we’ve got good hardware, good network and you can get 5G all the time, what do you use the faster speeds for on your phone? Where is the answer to that question is the big thing. [CEO Tim] Cook did point out downloads,” said Stern.

“Certainly downloading video, downloading music, that’s going to be faster. They also did a lot of gaming demos where you can see things instantly rendering and talking about how this would be faster than your home Wi-Fi. That’s another good thing for some consumers, certainly, but the killer app, which is what this is all about, we don’t know yet and this is why Apple is betting and that’s why … the carriers need Apple to bet because it’s all about the new era,” added Stern.

Krish Sankar is the senior research analyst at Cowen. He said 5G could give Apple stock a boost.

“I would say in terms of the overall event a lot of the specs are largely in line with what the supply chain had been telegraphing for a long time. I thought the price point was very attractive although there was some speculation of the pricing late last week, so largely overall I’d say in-line event. … We did a survey where we found a lot of respondents will be willing to upgrade their smartphones because of 5G. We just think that actually this 5G could be a longer, stronger cycle,” said Sankar.

Apple is a great stock to add to Roth IRA investments.

2. Amazon

In addition to Apple, Amazon has boomed in the wake of COVID-19. Mizuho analyst James Lee said Amazon is a buy because of consistent sales.

“From our proprietary checks using Searchmetrics, U.S. search traffic maintained a consistent growth rate compared to 2Q20 at 14% [year-over-year],” Lee wrote in a note to clients. “With conversion rates rising during the pandemic, we believe that 3Q20 is tracking ahead of consensus revenue growth of 32% YoY, or 8 points of deceleration compared to 2Q20, partially due to the rescheduling of Prime Day this year, ” said Lee.

Lee said the rise in online shopping will help Amazon this holiday season as well.

“By pulling some demand forward, the company is able to smooth out the peak in demand somewhat as it spreads it across a longer period, and exert less pressure on its fulfillment network, while still recognizing all the revenues in the fourth quarter. This is all the more important that with Covid-19 and the need for social distancing, consumers are likely to avoid the rush on physical stores, which typically starts around Black Friday weekend, and instead turn to online to satisfy their shopping needs,” said Lee.

Amazon is a key stock to add to a Roth IRA investment.

3. Netflix

Another stock that’s benefitted from COVID-19 is Netflix (NASDAQ:NFLX). As more people quarantined, they watched the streaming service more than ever.

Steve Chiavarone is a portfolio manager, equity strategist, and vice president at Federated Hermes. He noted that Netflix is performing well because movie theatres are suffering as the coronavirus keeps people home.

“Cinemas are just a really tough space,” said Chiavarone.

NFLX - Flat for the day — Netflix is a top buy to supplement Roth IRA withdrawal

Chiavarone notes that Netflix stock is a growth stock that has staying power.

“The trend towards streaming is certainly in place,” he said. “We’ve seen a lot of the studios change their agreements where you’re now going to have a shorter period of exclusivity in the cinemas before getting programs onto streaming channels. I think in general the space is well-positioned. I think Netflix is the leader in that space and I think the secular trend is at their back,” said Chiavarone.

Jeffrey Wlodarczak is a financial analyst that is also bullish on Netflix stock.

“NFLX offers consumers an increasingly compelling unique entertainment experience on virtually any device, w/o commercials at a still relatively low cost. The company appears to operate in a virtuous cycle, as the larger their subscriber base grows (and their average revenue per user increases) the more they can spend on original content, which increases the potential target market for their service (and reduces existing subscriber churn) + enhances their ability to take future price increases (they are due for an increase as early as Jan 2021) and dramatically increases barriers to entry”, said Wlodarczak.

If an account holder wants to supplement their Roth IRA withdrawal, they can choose Netflix stock.

4. Zoom

Another stock that is a top pick for Roth IRA’s is Zoom (NASDAQ:ZM). The videoconferencing company is a ubiquitous presence since people have to work and attend school from home. BTIG analyst Matthew VanVliet says Zoom is a buy.

Zoom stock is a top stock to supplement Roth IRAs

“Overall the growth of the company has been unprecedented but as it expands well beyond a video-conferencing tool into a core human interaction platform forever augmenting how multi-modal interactions evolve into the future, the growth trajectory appears to only slow slightly,” said VanVliet.

“While much of the legacy environment is simply treading water, Zoom is pushing the envelope on product innovation and what the future of work / re-opening will actually look like rather than trying to form-fit existing tech to previous issues, which we believe will help Zoom emerge as the leading video platform that is pervasive across the entire IT landscape,” said VanVliet.

Zoom will grow as a Roth IRA withdrawal supplement

BofA Securities analyst Nikolay Beliov wrote in a note to clients that he believes that Zoom will continue to grow with new products.

“We believe Zoom’s increasing relevance and continued good execution translate into both near-term and long-term upside ,” wrote Beliov in a note to clients.

“Furthermore, new product releases and enhanced capabilities signal Zoom’s ambition to become a more holistic collaboration and workflow platform, vs a video and [unified communications as a service] solution,” added Beliov.

D.A. Davidson’s Rishi Jaluria also wrote to clients that Zoom stock is a good addition to Roth IRAs to supplement withdrawals.

“Our main takeaway was although [Zoom] has had strong traction in COVID-19, it is still underpenetrated and faces a massive market opportunity with runway for sustained growth post-COVID-19,” wrote Jaluria.

Zoom is a strong stock to supplement Roth IRA withdrawals.

5. Google

Google parent Alphabet (NASDAQ:GOOG) is performing well during the COVID-19 crisis. Ensemble Capital rates Google stock as a buy.

“After rallying by over 20% in July and August, Google’s share price pulled back sharply in September during the market wide correction. We believe that Google’s shares remain undervalued and that while the pandemic has hurt business performance in 2020, that the core value of Google Search, YouTube and their other properties such Google Maps has not been permanently impaired in any way and in fact the post-COVID world likely depends even more heavily on Google’s digital tools,” said Ensemble Capital.

Google stock is a robust stock for Roth IRA holders who want to invest in tech.

6. Microsoft

Another tech stock that is doing well during COVID-19 is Microsoft (NASDAQ:MSFT). Microsoft had performed well because of its cloud technology. Jefferies analyst Brent Thill said that Microsoft is going to continue to rise because of its digital innovation.

“We were overwhelmed by the number of announcements and innovation at Microsoft’s digital event Ignite with some of the most noteworthy product announcements around Teams, communication, and security,” wrote Thill in a note to clients. Thill said he expects Microsoft will hit a price target of 240.

Mizuho Securities analyst Gregg Moskowitz said Microsoft is a strong stock and a good Roth IRA investment in the future.

“We view Microsoft as a diversified business with excellent visibility and these product enhancements should help sustain near double-digit revenue growth for the foreseeable future,” said Moskowitz.

Microsoft stock top for Roth IRA withdrawal supplement

Moskowitz also wrote that cloud technology will help the stock grow.

“Looking forward, we continue to believe Microsoft is positioning for even greater success in cloud,” said Moskowitz.

William Blair analyst Jason Ader also thinks that Microsoft is a buy.

“Microsoft sits in the enviable position of being able to capitalize on salient secular trends such as digital transformation, cloud migration, and DevOps,” said Ader.

Microsoft is a strong stock for Roth IRA withdrawal supplements.

7. Gilead

Gilead(NYSE: GLD) is a pharma stock that is helping people through this coronavirus crisis. Gilead’s COVID-19 treatment remedesivir has been touted as a top treatment that President Trump used during his bout with coronavirus. While remdesivir has not been proven to reduce mortality, it has been proven to reduce hospital visits for coronavirus patients. Raymond James analyst Steven Seedhouse noted that Gilead has some potential for growth.

Gilead stock a key stock for Roth IRA withdrawal supplement

“The updated data continue to suggest RDV provides only incremental benefit to some hospitalized patients but no clear mortality benefit. Recall the original corresponding NEJM publication for this trial pointed to a potential (but not yet stat sig) mortality benefit at day 14 that appeared driven really only by patients with baseline ordinal score of 5 (hospitalized, requiring any supplemental oxygen),” said Seedhouse.

With Gilead’s promising remedesivir treatment, the stock could be beneficial to Roth IRA holders.

8. Pfizer

In addition to Gilead, Pfizer (NYSE: GLD) is another pharma stock that is outperforming during the coronavirus pandemic. With a COVID-19 vaccine imminent, RBC Capital analyst Randall Stanicky rates Pfizer stock as a buy.

“We are encouraged by the data to date and believe Pfizer remains on track to have a clear sense of the vaccine’s profile by the end of October, with potential FDA approval shortly thereafter,” said Stanicky.

David Risinger, equity analyst at Morgan Stanley, also rates Pfizer stock as a good addition to Roth IRAs.

“With the announced deals to divest its Consumer and Upjohn businesses, PFE will be left with a cleaner platform in 2021 and beyond with best-in-class revenue and EPS growth through 2025. Importantly, that growth is not predicated on major pipeline contribution or acquisitions, providing solid visibility,” said Risinger.

“We project solid growth prospects, and the company’s COVID vaccine candidate offers optionality. Pfizer’s financials and dividend are set to adjust in 4Q20 when it completes the Viatris transaction. Pipeline execution will be key to investor perception, given late-decade patent expiration exposure,” added Risinger.

Analysts says Pfizer is a buy for Roth IRA’S

Risinger also predicts Pfizer has strong growth potential.

“Pfizer projects 2025 sales of $55.7 billion, which reflects 6%+ 5-yr CAGR (compound annual growth rate)’20-’25. Pfizer has strong growth potential in both existing and pipeline products – it forecasts $8 billion in incremental sales from each in 2025.

“Non-risk adjusted pipeline revenue is projected to be $15 billion+ by 2025, including $6 billion from Vaccines, $3 billion from Inflammation & Immunology, $3 billion from Rare Disease, and $3 billion from Oncology; risk-adjusted revenue is $8 billion. Prevnar 20V is not included as part of 2025 vaccine pipeline sales because it will cannibalize the existing 13V,” added Risinger.

Pfizer is a strong stock for Roth IRA’s.

9. IBM

IBM(NYSE:IBM) is a reliable dividend stock for Roth IRA’s. The company’s management spoke about its strong cloud tech division with Red Hat.

“Red Hat delivered strong results in the period with normalized revenue growth of 18%”, said IBM.

IBM stock good to prevent Roth IRA withdrawal

IBM noted that the growth was “driven by the synergistic effect of IBM and Red Hat” and that expansion helped IBM grow.

“Last August, we talked about how Red Hat would benefit from IBM’s incumbency in large accounts and leverage our global reach to expand into new markets,” said IBM.

“We’re seeing that where IBM and Red Hat come together, clients are making larger scale architectural commitments and longer-term and more strategic purchases. This quarter we had a significant increase in the number of Red Hat large deals”, added IBM management.

The company also “expanded Red Hat’s presence in underpenetrated focus markets.”

IBM CFO James Kavanaugh also spoke about the company’s strong balance sheet.

“Our prudent financial management in these turbulent times enabled us to expand our gross profit margin, generate strong free cash flow and improve our liquidity,” said Kavanaugh.

Kavanaugh also touted its strong dividend yield.

“The company also returned $1.5 billion to shareholders in dividends and stock buybacks. “We have the financial flexibility to continue to invest in our business and return value to our shareholders through our dividend policy,” said Kavanaugh.

For a strong dividend stock to prevent Roth IRA withdrawals, account holders can pick IBM.

10. NVDA

Nvidia(NASDAQ:NVDA) is a tech company that is performing well with its computing graphics.

Logan Purk is the senior equity analyst at Edward Jones in St. Louis. He details that the recent acquisition of British software company ARM gives NVDA “an all-in-one turnkey solution for AI deployments within data centers and smart electronics, further solidifying Nvidia’s lead within this fast-growing market.”

Purk also notes that its programming system makes the stock a cutting-edge buy.

“Nvidia’s proprietary programming architecture, called CUDA, makes its products easier to use, program and deploy, compared with other products,” said Purk.

“Given the company’s position in growth markets and our optimistic growth outlook, we believe shares are attractively valued for long-term investors,” said Purk.

“We rate Nvidia shares as a ‘buy’,” Purk says.

“In our view, Nvidia maintains an attractive position within its gaming markets, with nearly 70% market share. The company continues to expand its presence in the fast-growing data center and automotive markets, particularly with AI, which should lead growth over the long term,” added Purk.

Norm Conley is CEO and chief investment officer at JAG Capital Management in St. Louis. He said that Nvidia’s growth makes the stock a buy.

“NVDA’s valuation is demanding, but we think it’s reflective of the company’s leadership position in fast-growing end markets,” said Conley.

Conley sees little downside to Nvidia’s growth.

“From a fundamental perspective, we see little to pick on outside of the company’s exposure to an overall sluggish PC market and challenging automotive market given the current macro backdrop,” explained Conley.

Danielle Shay is the director of options at Simpler Trading in Austin, Texas. She also rates Nvidia a buy because of its recent acquisitions.

“Nvidia’s acuisition of (Arm’s) technology is very significant. It’s a space that AMD is not in currently. Because of the ARM acquisition, Nvidia will be able to breach more into the AI space and growth potential,” Shay explains.

Nvidia is a strong tech stock to add to Roth IRA’s.

Roth IRA withdrawals can be beneficial with proper planning

If an account holder need to make a Roth IRA withdrawal, there are many options that can be made. However, prudent planning is necessary to avlid mistakes and still keep the accounts healthy. With TradingSim’s blogs and charts, account holders can find the best stocks in which to invest their IRA’s. TradingSim can also help Roth IRA holders find the best information if they hve to make Roth IRA withdrawals.

When people are saving for retirement, many debate whether to open a Roth IRA vs. traditional IRA. Whether there is a bull or bear market, investors can decide which method will help them rebalance their portfolios. This TradingSim article will assist investors who want to decide which method is best for them.

What is the difference between a Roth IRA vs. traditional IRA?

In the comparison between a Roth IRA vs. a traditional IRA, there are many differences.

A traditional IRA has these key characteristics :

Traditional IRA’s are offered by employers to workers.
An account holder can put away a significant part of their pre-tax earnings.
With a traditional IRA, taxes are delayed until funds are withdrawn.
Funds can’t be withdrawn penalty-free until the account holder is 59 1/2.
If an account holder makes large contributions to the IRA, it can lower their taxable income.
Compound interest can help account holders build more wealth in retirement.
Traditional IRA’s don’t have income limits.
Account holders can’t make contributions after they turn 70 1/2.
When account holders turn 70 1/2, they take required minimum distributions.

On the other hand, a Roth IRA has these characteristics:

Roth IRA’s are purchased by an individual.
In 2020, the maximum contribution limit is $6,000.
There is no age limit to Roth IRA contributions.
In contrast to traditional IRAs, Roth IRAs don’t have required minimum distributions.
When a person makes a withdrawal at any time, there are no penalties.

What are the advantages of a traditional IRA?

Steve Frazier is president of financial firm Frazier Investment Management. He says that people that earn too much for a Roth IRA could benefit more from a traditional IRA.

“It’s possible (to be) disqualified from the Roth in the first place,” said Frazier.

David Johnson is a financial adviser at Modern Horizons Wealth Advisors. He said the pretax contributions to traditional IRA’s can help people save money.

“Pretax contributions are one of the few tax reduction strategies many workers have available. Especially now, since fewer are able to itemize because of the increased standard deduction,” said Johnson.

What are the downsides to a traditional IRA?

Some financial experts like Ed Slott says account holders that have a traditional IRA can be affected by increased tax rates.

“With a traditional IRA, you’re at the mercy or uncertainty of what future higher tax rates might do to your retirement savings. With a Roth IRA, you don’t have to worry about future rates, because your tax rate in retirement will be zero,” said Slott.

Young people may also balk at traditional IRAs if they want to make withdrawals before the assigned age of 59 1/2. Slott noted that Millennial account holders may see that requirement as a downside to a traditional IRA.

“That’s a big deal for lots of younger people who are worried, ‘What if I need to get to my money?’” said Slott.

Chris Chen is a financial adviser at Insight Financial Strategists. He said that going from a traditional IRA to a Roth IRA can cause tax liabilities.

“Going from a traditional to Roth is giving up a lot of assets and income. The name of the game is not to pay no taxes on distribution, but to minimize taxes over a lifetime,” said Chen.

Financial experts say Roth IRA has advantages

Some financial experts say that Roth IRAs have a benefit. He said that even though Roth IRA holders have to pay taxes up front when they open an account, they can make tax-free withdrawals in retirement.

“Most people are better off taking a tax hit now,” said Frazier.

Steven Elwell is a certified financial planner and partner with Level Financial Advisors. He believes that as a person’s income increases, the lack of withdrawal taxes make Roth IRA’s more attractive.

“If you expect your income to go up, then something like a Roth might make sense,” said Elwell.

As financial expert Ed Slott noted, Frazier agrees that the Roth may be a better option for younger people saving for retirement.

“If you’re looking for flexibility, the Roth is the superior saving vehicle for the younger generation,” said Frazier.

Clayton Alexander is a registered investment advisor and founder of Teton Wealth Group. He said that starting a Roth IRA has benefits for people open one at an early age.

“One of the benefits of starting a Roth at an earlier age is the concept of compounding interest that can occur inside the investment, tax-free,” says Alexander.

Compound interest impacts comparison of Roth IRA vs. traditional IRA

Elwell isn’t sure that a traditional or Roth IRA is better.

“I don’t think there is a hard and fast rule that (one) is better,” said Elwell.

Jeannette Bajalia is president and principal advisor of Petros Financial. She said either option is good for investors saving for retirement.

“It’s not whether you should take a Roth over a traditional 401(k), but what is the right mix of savings to achieve your life and retirement goals,” says Bajalia.

Financial expert Chris Hogan says to consult a tax professional before opening a traditional IRA.

“If you have the money to pay the taxes on that money, it is a fantastic thing to do each and every year,” said Hogan.

Financial experts say people can use Roth to save

For many people who are struggling with finances, some withdrawals may be acceptable if they held the accounts for at least five years. Mark Jaeger is the director of tax development at TaxAct. He said that Roth IRA’s can be used as emergency funds in emergency situations.

“People are starting to be laid off, and it’s difficult to find that money when you start being put out of work. But you can always get your basis back from the Roth IRA,” said Jaeger.

Financial experts recommend Roth vs. traditional IRA

Another financial expert for Roth IRAs is retirement expert Jeanne Fisher. She is the managing director at Strategic Retirement Partners. She says that Roth IRA’s are beneficial for its low federal tax rate.

“If they are in a very low effective federal tax rate, or even a negative tax rate, the Roth is very beneficial. Finally, it can be used as a flexible bucket in retirement for high-income, high-net-worth clients,” Fisher says. “We consider all things like: How is the rest of the nest egg saved? Is it all tax-deferred? Are they expecting a pension? Do they need all of their retirement savings or do they intend to pass it to the next generation? Will they need all of their projected RMDs? I’m not exaggerating when I say—especially particular to the 401k—that eight out of 10 times I will recommend a Roth contribution,” said Fisher.

Fisher and other financial advisers show how Roths help people save on taxes.

“We illustrate the total growth of the portfolio and what the cumulative account balance could be in retirement. We also educate to how it affects their paycheck. Electing the Roth in the 401k isn’t going to result in a big tax bill when you file your taxes. Instead, the tax withholdings are adjusted on your paycheck, and in most cases, you are seeing only a minor adjustment each pay period,” said Fisher.

Fisher also touts the tax-free growth in Roth IRA’s.

“For one, investors always decide how much they want to save first, and then we talk about taxes. I have never, in my 12-year career, had someone walk back in my office with their ‘tax savings’ and ask to invest it. It just doesn’t happen. Also, most people max out the IRA contributions, which completely negates the argument,” said Fisher.

Financial experts say to talk to advisors before converting to Roth vs. traditional IRA

Jennifer Weber is vice president of financial planning at Weber Asset Management. She said that it’s key to consult a financial advisor before choosing a Roth vs. traditional IRA.

“It’s important to understand the following: what your company offers, does your company offer a match on retirement contributions and are you eligible to contribute directly to a Roth IRA (based on income limits),” said Weber.

Clark Howard is a financial expert that recommends traditional IRA’s because of potential rising tax rates.

“Our tax rates today are unusually low because we’re running a massive budget deficit. At some point, those tax rates will increase. That means there’s a good chance tax rates will be higher when you go to spend your nest egg in 25 or 30 years,” said Howard.

Howard said that Roth IRA’s may be taxed at a higher rate later, so people should choose traditional retirement accounts.

“Remember, in general, tax rates are likely to go higher over the years no matter which political party is in power. That means it may make more sense to skip the deduction of a traditional IRA now to avoid tax later with a Roth IRA,” said Howard.

Financial experts say Roth IRAs have tax benefits

Financial expert Suze Orman said Roth IRA’s could be best for investors while tax rates are low. She suggests people should invest in a Roth before taxes increase to pay off the increasing national debt.

“Do you really think that tax brackets aren’t going to have to go up five, 10, 15 years from now in order to pay for all the debt that we’re carrying? Of course, they’re going to have to,” said Orman.

While Suze Orman recommends Roth IRA’s, there are financial analysts that disagree with the world-renowned financial analyst. Monica Dwyer is vice president at Harvest Financial Advisors. She thinks that Orman’s advice may be too general. Dwyer said people should pick a traditional IRA or Roth based on their own financial situations.

“I think that Suze is concerned that future taxes will be much higher because we cannot continue on the spending parade that we have been on, our deficit is ballooning and, just like someone with a lot of credit card debt, this debt will have crushing consequences at some point,” said Dwyer.

“Does that mean her advice is good? Not necessarily. It just depends on the person,” added Dwyer.

Roth IRAs have advantages for young investors

Thomas Scanlon is an adviser at Raymond James. He said that a Roth IRA can give tax-free advantages to young investors.

“Folks just starting out might have almost 40 years of tax-free growth. What a great way to build wealth,” said Scanlon.

Mark Beaver is a financial adviser at Keeler and Nadler. He said that a favorable tax code can help investors save more money.

“The tax code today is about as favorable as it’s ever been and the likelihood of that changing (to be higher) in the future is pretty good. Because of that, we look to add to Roths directly or do things like backdoor Roth contributions or conversions where it makes sense,” said Beaver.

Financial experts recommend Roth IRA for young people

Because Roth IRAs don’t have age withdrawal limits, young people can let money grow tax-free. Ryan Marshall is a New Jersey-based certified financial planner. He said young investors should consider a Roth IRA.

“This is an area most young people don’t consider. We have seen a lot of clients who are withdrawing more from their 401(k) account than they actually need to live on in retirement. The Roth IRA currently does not force you to withdraw funds and continues to grow tax-free so long as you leave money invested,” said Marshall.

“It is great to build up those Roth funds when you are younger because you may not qualify when you are older,” added Marshall.

Pete Hunt is a certified financial planner and director of client services at Exencial Wealth Advisors. He recommends Roth IRA’s for most of his clients. However, he doesn’t recommend Roths for high-income clients.

“I recommend it to all my clients, unless they are in a situation where they think they will make significantly less income in the future,” said Hunt.

‘I like having a Roth IRA, if they are eligible for it, just because it gives a lot of flexibility that if they need that money, they can pull the contributions at any time for any reason,” Hunt said.

What are the disadvantages of a Roth IRA vs. traditional IRA?

While the Roth IRA can have benefits, there can be a tax downside. Dwyer said Congress can still add increased taxes to Roth IRA’s.

“Congress can get pretty creative about where they are going to collect taxes from and there is no guarantee that they won’t someday go after Roths,” said Dwyer.

How can a person make a Roth conversion?

Since many people want to save money on their Roth IRA’s, there can be an advantage with reduced required minimum deductions. Maria Erickson is a financial adviser. She said taxpayers can save on taxes without a required minimum distribution.

“This year is an unprecedented opportunity. The numbers are pretty compelling. You can reduce your tax bill by 30% to 40%,” said Erickson.

How can Roth IRA’s help with homeownership?

In addition to Roth IRA’s helping people save for retirement, Roths also can be used for another purpose. If a person meets certain requirements, they can withdraw $10,000 from their Roth IRA’s to purchase a home. Daniel Galli is the principal of Daniel J. Galli & Associates. He suggests that young people can use their Roth IRA’s to buy a home.

“We’ve long suggested that young people use a Roth IRA to save the considerable amount needed for a first-time home purchase,” said Galli.

“As long as we can meet the five-year rule, they can use all contributions plus up to $10,000 of gain, free of tax and penalty,” Galli said.

While people can use their Roth IRA’s to buy a home, Galli notes that people have to aggressively invest to fund the accounts in the future.

“This strategy requires some market risk in order to enjoy some gains, but the rewards can balance that,” said Galli.

While Galli is for people using the Roth IRA for buying homes, some financial planners are opposed. Certified financial planner and CPA Jeffrey Levine is the director of advanced planning at Buckingham Wealth Partners. He said that Roth withdrawals should be rare and reduced over time.

“You might want to make it more conservative over time,” Levine said.

Financial experts advise caution witth Roth IRA home ownership

In addition to Levine, there are other experts who think that people should save their Roth IRA funds. Shon Anderson is president of Anderson Financial Strategies.

“These accounts are designed to help people accumulate as much money as possible for retirement,” said Anderson.

“You can obtain a loan for a home, car, business venture, college tuition … but no one will ever receive a loan to retire,” said Anderson.

Galli said some younger account holders should use Roths to buy homes.

“If the person is contributing to a 401(k), getting a decent match, they’re on a good track for retirement and the Roth is just a nice addition, I might consider it,” said Galli.

However, he doesn’t advise Roth IRA’s for home ownership if people are closer to retirement.

“But if their only retirement savings is the Roth and they’re, say, in their 40s, I probably wouldn’t,” said Galli.

IRS lets people take more from IRAs

With the current economic volatility, the IRS has stepped in to help IRA holders. The IRS lets people withdraw up to $100,000 from their retirement accounts. The CARES(Coronavirus Aid Relief and Economic Security) Act says that spouses of account holders can also withdraw up to $100, 000 from their accounts. Jeffrey Levine is CPA and director of advanced planning at Buckingham Wealth Partners. He notes that the changes are helpful to account holders’ spouses.

“The spouse thing is pretty big. I had a lot of people in that camp, where the spouse was out of work and didn’t have significant retirement account assets,” said Levine.

Retirement plan consultant Denise Appleby says eligibility can help people who encounter economic difficulties.

“If you experience adverse financial consequences, because a member of your household, related to you or not, had their income adversely affected by COVID-9, you are eligible for the $100,000 coronavirus-related distributions,” she said.

Some financial advisors against extra Roth borrowing

While some financial advisors want their clients to take advantage of the new IRS rule, some disagree. Certified public accountant Ed Slott doesn’t think people should take extra funds out of their Roth IRA’s. He says the withdrawal now will lead to more taxes later.

“Remember, it’s still not a good thing: You’re taking your own money and you’ll owe the taxes,” said Slott.

Financial planner Mark Scribner also wants people to borrow from Roth IRA’s as a last resort.

“If you have investment accounts, you should think about liquidating taxable accounts first, traditional IRAs and 401(k)s second, and Roth IRAs last,” said Scribner.

“Consider taking money first from pre-tax accounts or traditional retirement accounts before Roth IRA accounts,” added Scribner.

“Evaluate a personal loan, depending on what type of interest rate you might build a qualify for,” said Poppy.

Poppy still advocates for IRA’s over other online trading apps.

“You have a little bit more flexibility since you can take out different shares, and you can really control the tax consequences a little bit better,” said Poppy.

While Poppy is against Roth IRA borrowing, he says people can borrow tax-free if they meet certain requirements.

“If taking from a Roth IRA, it can be beneficial since you can access your basis or contribution tax-free without penalties,” said Poppy.

Poppy says people should consult financial planners before borrowing from a Roth.

“Input from a good CPA and a good financial planner is really helpful. [They can help] you model it out in terms of what the impact long-term will be,” said Poppy.

Poppy also wants people to consider whether they can afford to replace the withdrawn funds later.

“The key thing to remember is that you are reducing your future retirement income. Do you have a plan to replenish that?”

Can a new administration change traditional IRAs?

The new election may bring new changes to traditional IRA’s. Presidential candidate Joe Biden has promised to reform traditional IRA’s in a new plan. His website had these details:

“Under current law, the tax code affords workers over $200 billion each year for various retirement benefits—including saving in 401k-type plans or IRAs. While these benefits help workers reach their retirement goals, many are poorly designed to help low- and middle-income savers—about two-thirds of the benefit goes to the wealthiest 20% of families. The Biden Plan will make these savings more equal so that middle class families can enter retirement with enough savings to support a healthy and secure retirement,” noted Biden’s website.

J. Mark Iwry is a nonresident senior fellow at the Brookings Institution. He said that the changes may not affect traditional IRA’s.

“Don’t assume the private pension tax expenditure would necessarily be a deficit reduction target in a Biden-Harris administration. The private pension system plays a unique role in our economy,” said Iwry.

The Tax Foundation noted that Biden’s plan will “shift some of the benefits of tax deferral in traditional retirement accounts toward lower- and middle-income earners with the goal of encouraging additional saving by those taxpayers.

Would auto-IRA’s replace Roth or traditional IRA’s?

Biden’s plan would also implement auto-IRA’s for workers whose employers don’t offer retirement accounts. Iwry said the new system will help traditional IRA’s.

“The pension tax expenditure will be even easier to defend when auto-IRA makes the system far more inclusive and progressive,” said Iwry.

Iwry noted that partisan politics hurt the chances of enacting the auto-IRA program.

“The Obama-Biden administration made auto-IRA the centerpiece of their retirement proposals, but then Obamacare was enacted,” Iwry continued. “The ensuing divisive politics and toxic partisanship meant it was no longer the right moment.”

However, Iwry believes that the idea can grow with some states enacting auto-IRA’s and have “been steadily acquiring proof of concept as seven states have enacted it; others are considering it, and three of those seven states have begun implementation, which is going smoothly,” Iwry said.

Iwry hopes that an act of Congress to enact nationwide auto-IRAs will help compliment Roth and traditional IRA’s.

“Congress can achieve nationwide uniformity with a federal auto-IRA that builds on, preserves and integrates the state auto-IRAs”, said Iwry.

Top 5 stocks for Roth IRA vs. traditional IRA

No matter which IRA a person chooses, they can choose these top stocks for investment.

1. Amazon

If some people want to invest their IRA, Amazon (NASDAQ:AMZN) is the best stock choice. During the pandemic, Amazon has become the go-to online marketplace. The e-commerce giant’s latest line of products, including its new Amazon Fire TV stick, will bring in new revenue. Amazon’s vice-president, Sandeep Gupta, spoke about the new Fire TV features.

“Today, you can search for comedies, or stuff by Tom Cruise, but we’ve tried to make a landing spot for when you don’t know what you want to watch. This shows you stuff that’s free, movies and TV shows, broader categories, apps and more,” said Gupta.

Financial expert Puja Tayal noted that Amazon’s varied revenue streams like grocery delivery and cloud technology make it an attractive investment for Roth vs. traditional IRA’s.

“AMZN’s biggest win was its entry in grocery. Grocers were reluctant to go online. But the lockdown forced people to buy almost everything online. AMZN increased its grocery delivery capacity by over 160% to cater to the threefold surge in online grocery demand,” wrote Tayal.

“The e-commerce giant also saw a 29% year-over-year surge in Amazon Web Services (AWS), as companies shifted their work to the cloud to facilitate remote working. Moreover, it saw a 29% uptick in its subscription services like Amazon Prime videos,” added Tayal.

CNBC financial analyst Jim Cramer also rates Amazon as a buy for retirement accounts.

“I don’t care that it’s up 50% for the year, it has more catalysts than nearly any other stock under the sun: new revenue streams, great balance sheet, stay-at-home economy exposure and, of course, 5G. Now that it’s come down from its highs … I think you have to buy it,” said Cramer.

Amazon is a top stock for Roth and traditional IRA’s.

2. Netflix

Netflix( NASDAQ: NFLX) is a growth stock that is a great investment for Roth or traditional IRA’s. Because of the worldwide quarantine, many people stayed home and binge-watched Netflix shows like Tiger King. Netflix’s chief financial officer, Spence Neumann, spoke about the streaming company’s future.

“So Netflix 2021 is going to be a much better service than Netflix 2020, which gives those newer members and existing members even more reason to stay highly engaged and stick around and also to entice future members to join. So we think that the growth opportunity is as big as ever. There’s just that kind of near-term pull forward that you’re seeing,” said Neumann.

Financial analysts bullish on Netflix stock

With Netflix’s popularity and international expansion, Jefferies analyst Alex Giaimo says Netflix stock is a buy.

“While the soft third-quarter outlook may put the stock in the penalty box near-term, there is no change to our positive long-term thesis. We view Netflix as a consistent high double-digit growth story with sizable margin expansion over time,” said Giaimo.

Netflix is a top stock for Roth and traditional IRA investment because of its growth.

3. Apple

In addition to Netflix, Apple (NASDAQ:AAPL) is a stock that outperformed during the COVID-19 crisis. Apple’s chief financial officer Luca Maestri touted the tech company’s Q2 2020 results.

“So the revenue for the quarter was $58.3 billion, up 1% from a year ago, despite the extreme circumstances from the impact of COVID-19 and a headwind of 100 basis points from foreign exchange,” said Maestri.

Maestri also spoke about Apple’s growing Services profits.

“Services revenue followed a different trend with very strong year-over-year growth of 17%. We set a new all-time revenue record of $13.3 billion, with all-time records in many of our Services categories and in most countries we track,” said Maestri.

With its potential bundling of services like Apple TV+ and Apple Music, Morgan Stanley analyst Katy Huberty rates Apple stock a buy.

“We have long argued that bundling services is a unique tool that Apple has at its disposal,” said Huberty.

UBS analyst David Vogt says Apple stock could rise if the revenue increases in the future.

“If several of Apple’s under monetized Services live TV+, and News mature and contribute to a segment revenue reacceleration back to 17% growth the next three year FY23, consolidated revenue could come in $13 billion higher than our forecast,” added Vogt.

With Apple’s new products, Apple is a stock that can be an impressive investment for Roth or traditional IRA’s.

4. Microsoft

With its established reputation in tech, Microsoft (NASDAQ: MSFT) is a top stock for Roth or traditional IRA investment. The company wants to increase its gaming division with its purchase of Bethesda Softworks’ parent, ZeniMax. Joost van Dreunen, founder of video game investment firm New Breukelen, said the deal will help Microsoft’s stock.

“The ZeniMax acquisition instantly increases the value of GamePass and closes the content gap between Xbox and [PlayStation]. It raises the barriers to entry for aspiring new contenders like Amazon and Google,” said van Dreunen.

Wedbush’s Dan Ives also believes the acquisition will boost Microsoft stock.

“While Xbox and gaming have been successful, [Microsoft] recognizes its need for consumer based revenue growth, which we believe this deal will directly help drive along,” wrote Ives.

In addition to Wedbush, Amana Mutual Funds also rates Microsoft a buy.

“Microsoft has done an excellent job building its Azure cloud services business, while we believe a strong period of semiconductor demand will arrive in the new decade supporting Microchip and Taiwan Semiconductor. Whether the rally starts in 2020 or 2021 remains to be seen but recent signs have been positive,” said Microsoft.

Microsoft is a top stock for Roth and traditional IRA investment.

5. Spotify

In the music streaming world, Spotify (NYSE:SPOT) is king. The streaming service’s growth during the COVID-19 pandemic helped the company increase its subscriber growth. Spotify spoke about its Q2 2020 results.

“After making adjustments to help us weather the pandemic in Q1, consumption returned to normal levels this quarter. Monthly active users increased to 299 million, and subscribers grew to 138 million, both exceeding our expectations. Advertising revenue, which took a significant hit in Q1, improved notably throughout the quarter, and we feel good about our momentum as we enter Q3,” said Spotify.

Financial analysts say Spotify could be top stock for Roth or traditional IRA

Bernstein analyst Todd Juenger said Spotify’s stock should rise with the addition of popular podcaster Joe Rogan. His Joe Rogan Experience podcast will be part of Spotify’s podcast collection.

“The market has added $20B of value to Spotify since the Joe Rogan podcast announcement…However, the analyst continue to believe it is unlikely that Spotify will generate much earnings from podcasts. He sees 37% potential downside in Spotify shares at current levels,” said Juenger.

In addition to Joe Rogan and former first lady Michelle Obama’s podcasts, Spotify’s ad revenue should drive its stock up as well.

“The stock is up sharply since the Joe Rogan podcast deal in mid-May, but there is further upside as podcasts help Spotify drive ad revenue on owned and licensed content, premium subscriptions and gross margins,” said Juenger.

Spotify is a stock with great potential in a Roth or traditional IRA.

Roth vs. traditional IRA’s can be good choice for investors

Whether a person chooses a Roth vs. traditional IRA, investors can sure that either retirement account will help increase wealth. If a person wants to choose the best stock for retirement account investment, they can practice trading those stocks on TradingSim. TradingSim’s blogs and charts can help people find the best stocks for their Roth or traditional IRA investments.

When investors are choosing between stocks vs. ETF’s, QQQ(NASDAQ:QQQ) can be an excellent ETF(exchange-traded fund) choice for new investors. In this TradingSim article, I’ll explain why QQQ stock can be a great addition to investors’ portfolios. This article will also explain what top 10 holdings in QQQ are the best for investors who want to start early investing.

What is QQQ stock?

The Invesco QQQ is a popular ETF that tracks the NASDAQ 100, which is full of tech growth stocks. If investors want to own many tech stocks at once, they can choose QQQ stock that holds many tech stocks. The QQQ stock has $120 billion in assets.

What is TQQQ stock?

In addition to QQQ stock, investors can buy TQQQ stock (NASDAQ:TQQQ). The leveraged ETF uses debt and derivatives to increase the returns of the NASDAQ 100. When investors use leverage to track the TQQQ, they can use borrowed capital to buy assets to make the price movement impact grow.

For example, the TQQQ tracks the NASDAQ 100. If the NASDAQ 100 moves up 1%, a regular ETF moves up 1%. However, with a leveraged ETF like TQQQ, a trader can have a 2 or 3% gain if the NASDAQ 100 rises.

Financial expert David Kreinces from ETF Portfolio Management notes the strong performance history of the TQQQ stock.

“The historical performance data strongly favors the Nasdaq-100 3x (TQQQ) for core equity exposure. The unleveraged Nasdaq-100 (QQQ) appears to be the “next-generation S&P 500” and adding moderate leverage can be priceless at times. “In fact, TQQQ returned 80x your money over the past 10-years, while the S&P 500 delivered just under 3x, or 285% in total return,” wrote Kriences.

Kriences advocates that investors who want to choose high-risk ETF’s can pick TQQQ.

“Past performance can never guarantee future results, but a continuation of the TQQQ growth rate above would turn $500 into $2 million within 19 years. Even if the TQQQ rate of return falls by half, to 28% annualized, a $500 investment could still reach $2 million in 34 years. Given this extraordinary long-term growth potential, we named TQQQ the ‘American Dream ETF, ” wrote Kreinces.

ProShares advise caution about TQQQ

While Kreinces says investors should buy TQQQ, buying leveraged ETF’s can be risky for investors. Even the TQQQ issuer ProShares warns traders that keeping the TQQQ stock too long can increase risk.

“Due to the compounding of daily returns, ProShares’ returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. These effects may be more pronounced in funds with larger or inverse multiples and in funds with volatile benchmarks,” noted ProShares.

While investing in TQQQ can have a huge payoff, traders should still exercise caution when buying the ETF with leverage.

Why should investors buy QQQ stock to track the NASDAQ 100?

If investors are interested in QQQ stock, they’re making a good choice since it follows the NASDAQ 100. The NASDAQ 100 has some advantages over the Dow Jones. While the Dow Jones only has 30 stocks, the NASDAQ 100 has three times as many stocks in its index. As the Dow Jones changes the stocks in its index, the NASDAQ 100 doesn’t have human input into which stocks are in that index.

In addition to being more rules-based, the NASDAQ 100 is outperforming the Dow Jones. While the Dow Jones had a volatile year, the NASDAQ 100 soared. As Sarah Ponzcek noted in Bloomberg, large-cap tech stocks are a strong buy.

“Last year, when the economy and earnings were booming, the Nasdaq 100 Index put together its best rally in a decade, rising 38%. In 2020, amid a raging recession and plunge in profits, it’s doing a little less well: up 37%,” wrote Ponzcek.

“Megacap tech firms have emerged as unshakable market leaders. Adored for their sturdy balance sheets and business models that not only hold up in a lock-downs but excel, the Nasdaq 100’s performance is making history by the day,” added Ponzcek.

Here are 10 of QQQ’s top tech holdings that are part of the ETF.

1. Amazon

Amazon (NASDAQ:AMZN) is a QQQ holding that had an incredible last quarter. The e-commerce behemoth reaped $89 billion in profits during the nationwide quarantine. As people stayed home, they ordered from the company’s website in record numbers. Because of the massive increase in Amazon’s revenue, CEO Jeff Bezos’ net worth ballooned to $200 billion. During the Q2 2020 earnings report, Bezos spoke about the results and how the company was contributing to keep workers safe during the COVID-19 pandemic.

“As expected, we spent over $4 billion on incremental COVID-19-related costs in the quarter to help keep employees safe and deliver products to customers in this time of high demand—purchasing personal protective equipment, increasing cleaning of our facilities, following new safety process paths, adding new backup family care benefits, and paying a special thank you bonus of over $500 million to front-line employees and delivery partners,” said Bezos.

Bezos tried to quell the controversy about Amazon having temporary, part-time workers by speaking about the full-time employees the company added.

“We’ve created over 175,000 new jobs since March and are in the process of bringing 125,000 of these employees into regular, full-time positions,” said Bezos.

In addition, Bezos touted how much money Amazon pumped in to the economy.

“Third-party sales again grew faster this quarter than Amazon’s first-party sales. Lastly, even in this unpredictable time, we injected significant money into the economy this quarter, investing over $9 billion in capital projects, including fulfillment, transportation, and AWS [Amazon Web Services],” said Bezos.

Amazon wants to increase empire with wearables

With its dominance in e-commerce, Amazon wants to get into the $50 billion fitness tracker market. Amazon is launching its Halo device to sell to consumers. Halo’s vice-president, Melissa Cha, spoke about the research that went into developing the Halo wearable.

“We did a global search to find the best experts. We found cardiologists, fitness experts, and people who had spent their careers researching sleep and wellness,” said Cha.

Analysts say Amazon is a top QQQ holding

Because of its meteoric growth, Daniel Salmon, an analyst at BMO Capital Markets rates Amazon a buy. He said that Amazon’s “long-term opportunity is stronger than ever, and we also continue to see outperformance over the next 12 months.”

In addition to BMO Capital, Wedbush is bullish on the e-commerce stock. Wedbush analyst Michael Pachter wrote in a note to clients the consumer demand led to a short-term strain on Amazon’s supply.

“Consumers are clearly spending more of their time and money shopping online in order to avoid crowds, driving the supply shortages and delivery delays on non-essential items that Amazon has disclosed in [April],” wrote Pachter.

Canaccord’s Maria Ripps said the continued increase in online shopping should help Amazon’s stock in the long term.

“Over the long-term, we[Canaccord] anticipate that the COVID-19 pandemic will accelerate existing eCommerce trends, benefitting platforms such as Amazon,” said Ripps.

Ripps also sees growth from its Amazon Web Services.

“For AWS, we [Conaccord] see revenue growing 36% year-over-year (vs. 34% in Q4) as demand for cloud computing also spiked in Q1 due to COVID-19, leading to pricing power that should drive AWS operating margin back to 27% (vs. ~26% in full year 2019),” said Ripps.

Amazon is a high-performing part of QQQ’s stock holdings.

2. Google

Google parent Alphabet (NASDAQ:GOOG) is another profitable QQQ holding. Google’s Q2 2020 earnings slightly dipped from last year with $38 billion in revenue. However, Google is still performing well overall. CEO Sundar Pichai spoke about how more people used Google services more during the quarantine.

“We’re working to help people, businesses and communities in these uncertain times. As people increasingly turn to online services, our platforms — from Cloud to Google Play to YouTube — are helping our partners provide important services and support their businesses,” said Pichai.

Ruth Porat, Google’s chief financial officer, also spoke about Google’s success with cloud technology.

“In the second quarter our total revenues were $38.3B, driven by gradual improvement in our ads business and strong growth in Google Cloud and Other Revenues. We continue to navigate through a difficult global economic environment,” said Porat.

Google a buy to some analysts

Financial expert Maria Ripps thinks that despite a decline in ad revenue, Ripps says the stock is a buy.

“Somewhat offsetting these advertising trends, we also see COVID-19 likely driving heightened demand for cloud computing as some online businesses see a surge in demand from increased time spent at home while others are forced to migrate systems and employees to remote operations,” said Ripps.

Google is a strong holding in QQQ’s ETF.

3. Apple

In addition to Google, Apple (NASDAQ:AAPL) is a QQQ top holding. The tech giant’s Q3 2020 earnings report surpassed expectations with $59.7 billion in revenue.

CEO Tim Cook spoke about the company’s results.

“Our June quarter performance was strong evidence of Apple’s ability to innovate and execute during challenging times. The record business results drove our active installed base of devices to an all-time high in all of our geographic segments and all major product categories. We grew EPS by 18% and generated operating cash flow of $16.3 billion during the quarter, a June quarter record for both metrics,” said Cook.

Cook also spoke about Apple’s efforts to contribute its profits to social change measures.

“This is a challenging moment for our communities, and, from Apple’s new $100 million Racial Equity and Justice Initiative to a new commitment to be carbon neutral by 2030, we’re living the principle that what we make and do should create opportunity and leave the world better than we found it,” said Cook.

Apple stock split may help QQQ stock grow

Apple recently announced a four-for-one stock split to make the stock more affordable to investors.

“The Board of Directors has also approved a four-for-one stock split to make the stock more accessible to a broader base of investors. Each Apple shareholder of record at the close of business on August 24, 2020, will receive three additional shares for every share held on the record date, and trading will begin on a split-adjusted basis on August 31, 2020,” said Apple in a statement.

Morgan Stanley’s Katy Hubert spoke about the Apple stock split.

“In the 3 and 6 months following past stock split, Apple shares have also outperformed the S&P 500, albeit by a lesser degree – by a median of 700bps and 610bps, respectively (1). The most significant post-split outperformance came in C2H14 after the 7-for-1 stock split (2), although this period also coincided with strong outperformance of the iPhone 6,” said Hubert.

Hubert also noted that the stock split may not be as influential on Apple stock as a future iPhone. However, she sees that the stock split will help the company’s stock.

“Nevertheless, we don’t believe the stock-split will be a “sell the news” type of event among institutional investors given the increasing expectations for the fall iPhone launch, and therefore the increase in retail demand following Monday’s stock split is more likely to be a positive catalyst for Apple shares, in our view,” said Hubert.

“Following Apple’s 4-for-1 stock split, we’d expect near-term retail demand for Apple shares to increase, especially given the current market environment (retail traders have accounted for up to 25% of stock market activity during the pandemic vs. 10% in 2019, although we’d note that retail investors have already been able to buy fractional shares, so the overall retail impact may not be as overwhelming as some perceive,” added Hubert.

Apple’s stock soared 30% after the stock split announcement. In QQQ stock, Apple is a valuable holding.

4. Tesla a key QQQ stock holding

Tesla (NASDAQ:TSLA) is a valuable holding in QQQ stock. The company has become the most valuable car corporation worth $209 billion.

Tesla has strong Q2 2020 earnings report

In its latest revenue report, CEO Elon Musk spoke about the company’s $6 billion in revenue.

“First of all, I’d like to thank the Tesla team for exceptional execution in the second quarter despite tremendous difficulties. They’ve done an incredible job, and it’s an honor to work with such a great team. I mean, there were so many challenges, too numerous to name, but they got it done and just what a great group to work with,” said Musk.

“Like I said, it’s just an honor to work with such a great team. And as a result, we were able to achieve our fourth consecutive profitable quarter. And although the automotive industry was down about 30% year over year in the first half of the year, we managed to grow deliveries in the first half of the year. So despite that massive industry decline, we actually went up, ” added Musk.

Musk also touted Tesla’s positive cash flow.

“On cash flows, our cash balance increased to our highest level yet of $8.6 billion, which included free cash flows of over $400 million. This is a strong result on its own despite an increase in capital expenses associated with Shanghai and Berlin, as well as movements in working capital,” said Musk.

Tesla stock split boosts shares

Similar to Apple, Tesla is also enacting a five-for-one stock split to make shares easier for investors to buy. Since the stock announcement, Tesla stock skyrocketed 76%.

Some analysts say stock splits help QQQ stock

Wedbush’s Dan Ives believes the split will help Tesla as a QQQ holding.

“We believe the stock split decision was a smart move by Tesla and its board, given the parabolic move in shares over the past six months, with another stock split by Apple and likely other larger tech stalwarts will follow this same path over the coming months, in our opinion,” Ives wrote in a note to clients.

He added that Tesla and Apple shares should continue to rise after the stock splits.

“I think this was a smart move by the companies and the board[s] and ultimately I think there’s going to be more stalwarts that follow. And I think right now, they’re just in a position of strength if you see what’s happening in terms of the market, of course on the EV[electric vehicle] side with Tesla and then Apple going into a supercycle. And this was the smart move at the right time in terms of the stock split and I view it as putting more sort of gasoline in the tank in terms of these stocks moving higher.”

JJ Kinahan is the chief market strategist at TD Ameritrade. He believes that the stock splits will lead to more demand for Tesla and Apple stock.

“I do think it will add to some increased demand. It’s become a lot more affordable for people overall,” said Kinahan.

Some experts think stock split will hurt QQQ stock

While some analysts are bullish on the stock splits, some are wary of the stock splits. Sarat Sethi, the managing partner at Douglas C. Lane, thinks that the stock split will hurt the long-term investors in QQQ stock.

“I think the idea that you can have more pieces of a pie for the same pie is concerning, especially for long-term investors and I think the ability for some of the retail investors to get in there and trade. So, that’s kind of making me a little wary when you look at how fast some of these stocks are moving when they’re announcing splits and some of the stocks that are just moving in these huge ranges even though the broader market’s not moving”, said Sethi.

Leon Cooperman is the Omega Family Office chairman and CEO. He doesn’t think that the stock split will help QQQ stock.

“Everybody understands that splits don’t create value. My dad once told me if he gave me five singles for a $5 bill, I’m no better off. … Apple’s up 30% with the S&P up 6% and everybody’s talking about the split. The splits don’t create any value,” said Cooperman.

Roger McNamee, co-founder of Elevation Partners, is also bearish on tech stocks in the QQQ ETF.

“I look at the market. I look at the stock split. And you never know when the momentum’s going to end, and I’m not trying to make a call on that issue. I’m just saying that, for me, this is enough. It’s been a great ride. And it’s not just Apple that I’ve been selling. I’m looking broadly through my tech portfolio — and I own a bunch of names — and I have been reducing positions across the board simply because I want to reduce the level of risk I’m taking in the market,” said McNamee.

5. Facebook

Facebook a profitable holding in QQQ stock

QQQ holdingFacebook (NASDAQ:FB) is a profitable QQQ holding. The social media giant had a healthy Q2 2020 earnings report. Chief financial officer Dave Wehner spoke about the company’s results.

“Q2 total revenue was $18.7 billion, up 11% or 12% on a constant-currency basis,” said Wehner.

Wehner noted that Facebook’s ad revenue increased as well.

Facebook stock a profitable QQQ stock holding

“Had foreign exchange rates remained constant with Q2 of last year, total revenue would have been $297 million higher. Q2 ad revenue was $18.3 billion, up 10% or 12% on a constant-currency basis,” said Wehner.

Maria Ripps said Facebook could benefit from people meeting more online and from “virtually all social interactions have been moved online during the pandemic.”

6. Netflix

Netflix (NASDAQ:NFLX) is a top holding in QQQ. The streaming company had an impressive Q2 2020, with $6.15 billion in revenue. During the quarantine, many people stayed home and watched the thousands of shows available on the streaming service, like Tiger King, Self-Made, and Love is Blind. After the last earnings report, chief financial officer Spence Neumann spoke about the positive results.

“We just added 10 million members, which is the largest growth we’ve ever had in a second quarter. And if you look at the — so we kind of look at the totality across the Q2 and Q3 period”, said Neumann.

Financial experts bullish on Netflix stock

Because of Netflix’s strong subscriber growth, Jefferies analyst Alex Giaimo said Netflix is a key QQQ holding.

In addition to Jefferies, Jeff Sica is a financial advisor that is bullish on Netflix stock. He thanks Netflix has an advantage because of its dominance in online content. The streaming service is often the first choice for producers of programming that reaches a wide audience.

“The real story with Netflix is that many producers always want Netflix to be their first choice of distribution. This is why they will continue to have the advantage in content,” said Sica.

Netflix is a tech stock that helps make QQQ stock a top pick for investors.

7. Zoom

Videoconferencing website Zoom (NASDAQ:ZM) had a spectacular Q2 with revenue of $663 million. That number surpassed the expected $500 million Wall Street expected. During the worldwide quarantine, millions of people used Zoom to work and communicate with each other. Zoom’s chief financial officer Kelly Steckleberg spoke about the results.

“Q2 was a remarkable quarter for Zoom as we continued to rapidly grow and invest in our business to meet the demands of our customers and communities. Let me start by reviewing our financial results for Q2, then discuss our outlook for Q3 and the increased view of our full-year FY ’21. Total revenue grew 355% year over year to $664 million in Q2,” said Steckleberg.

Analysts rate Zoom a buy for investors

Zoom’s stock is part of a reason that QQQ stock is a top pick for investors. Walravens is bullish on the QQQ stock holding.

“I have been doing this for 20 years, and I have never seen a story like this one. And it shows you the power of a really well-run company with a good mission that has exactly the service everyone needs in a crisis,” said Walravens.

Morgan Stanley also rates Zoom a buy. Before the company’s earnings report, the firm expected Zoom to surpass Wall Street expectations.

“Morgan Stanley analysts said ahead of the report that buy-side analysts expected Zoom to beat its own forecast by about 30%”, said the firm.

8. Nvidia

As a tech holding in QQQ stock, Nvidia (NASDAQ:NVDA) is a stock that is performing well in the ETF. The chipmaker had an impressive Q2 2020 earnings report. Founder Jensen Huang spoke about the company’s record $3.8 million revenue.

“Adoption of NVIDIA computing is accelerating, driving record revenue and exceptional growth. Growth in GeForce gaming accelerated as gamers increasingly immerse themselves in realistic virtual worlds created by NVIDIA RTX ray tracing and AI,” said Huang.

The company noted that despite COVID-19, its next-generation gaming cards will help Nvidia’s profits. During the pandemic, the gaming industry has soared as many people stay home. Nvidia provides many of the gaming cards for popular games like Fortnite.

“Despite the pandemic’s impact on our professional visualization and automotive platforms, we are well-positioned to grow, as gaming, AI, cloud computing and autonomous machines drive the next industrial revolution around the world,” said Huang.

Analysts bullish on Nvidia stock

Wells Fargo analyst Aaron Rakers noted that the Ampere graphics processing units will have a price increase. That upgrade can lead to Nvidia stock growth.

“The new Ampere lineup carries the same price points as the prior Turing GeForce line-up w/ GeForce RTX 3080 priced at $699. This compares to some reports pointing to a potential like-to-like increase; note that prior gen Turing (2018) and Pascal (2016) had $100 and $50 price increases, respectively,” said Rakers.

Mizuho analyst Vijay Rakesh also thinks the graphics processing units will help boost Nvidia stock.

“We believe the combination of a strong 3D rendering GPU platform boosted by RTX and AI drive a step up in its value proposition for developers and gamers and create a deeper moat versus the competition for NVDA,” said Rakesh.

Cowen also says Nvidia key part of QQQ stock

Cowen analyst Matthew Ramsay also thinks Nvidia’s chips for gaming devices make the stock a buy.

“We believe Nvidia is pricing the cards aggressively to ensure it maintains its dominant gaming ecosystem leadership and wallet-share given upcoming new GPU launches from Advanced Micro Devices Inc.’s Big Navi line, and new Sony/Xbox game consoles,” said Ramsey.

“Coupled with strong underlying gaming demand driven by COVID-19, we do expect the 3080 to represent a compelling upgrade for consumers, and expect that product cycle to drive gaming growth for the next several quarters,” added Ramsey.

9. Microsoft

Microsoft (NASDAQ:MSFT) is a top tech holding that is in QQQ stock. The tech giant had a profitable Q2 2020. With many people home quarantined, many people used Microsoft’s cloud technology. Chief financial officer Amy Hood touted the results.

“This quarter, revenue was $36.9 billion, up 14% and 15% in constant currency. Gross margin dollars increased 22% and 25% in constant currency. Operating income increased 35% and 39% in constant currency, and earnings per share was $1.51, increasing 37% and 41% in constant currency”, said Hood.

“Revenue was $11.9 billion, increasing 27% and 28% in constant currency, ahead of expectations, driven by continued customer demand for our hybrid offerings,” said Hood.

Microsoft also spoke about the company’s cloud growth with its Azure division.

“On a significant base, server products and cloud services revenue increased 30% and 32% in constant currency. Azure revenue grew 62% and 64% in constant currency, driven by another quarter of strong growth in our consumption-based business across all customer segments,” said Hood.

Experts bullish on Microsoft stock

Because of Microsoft’s Q2 2020 impressive earnings report, Amana Mutual Funds says the stock will continue to grow.

Microsoft’s Azure cloud technology has also made the company’s stock a buy to other financial analysts.

Wedbush’s Dan Ives said that Microsoft “has seen robust cloud deal activity around Azure in the field during the June quarter with modest cloud upside expected, as this current work from home environment is further catalyzing more enterprises to make the strategic cloud shift with Microsoft across the board.”

As more customers use Microsoft Teams and other products to work from home and communicate, Microsoft is a solid part of QQQ stock.

10. Adobe

In addition to Microsoft, Adobe (NASDAQ:ADBE) is a tech holding that’s boosting QQQ stock. Adobe had a strong Q2 2020, with more customers using the company’s Photoshop and Document Cloud e-signing technology. The software company’s CEO Shantanu Narayen touted the company’s robust results.

“Adobe drove strong Q2 performance across Adobe Creative Cloud, Adobe Document Cloud, and Adobe Experience Cloud. We delivered $3.13 billion in revenue in Q2, representing 14% year-over-year growth. GAAP earnings per share for the quarter was $2.27, and non-GAAP earnings per share was $2.45,” said Narayen.

“We continued to drive strong adoption for Adobe Sign, our cloud-based electronic signature solution, with usage increasing 175% since the start of our fiscal year. Mobile usage exploded with Acrobat Reader installations increasing 43% year-over-year and Adobe Scan installations, up 66% year-over-year,” added Narayen.

Experts say Adobe is vital part of QQQ stock

With Adobe’s strong last earnings report, Amana Mutual Funds say investors should add QQQ stock to their portfolio.

“Digital media leader Adobe has also appeared as a top contributor over multiple years. Its appreciation wasn’t as great but it’s a large position, leading to the strong contribution,” said Amana Mutual Funds.

Qualivian Investment Partners is also bullish on Adobe as part of QQQ stock. Despite Adobe’s diminished sales in its Digital Experience division, but still is a top holding in the QQQ ETF.

“ADBE Reported strong Q2 results in the Digital Media and Document Cloud segments. The third segment, Digital Experience, was negatively impacted by COVID which led to a decline in advertising and delays in booking and consulting services for enterprises. COVID also negatively impacted the small and medium-size business segment. The business model and market position of Adobe remains strong and we have confidence in it as a long-term holding,” said Qualivian Investment Partners.

Adobe’s 14% growth from a year ago shows that many people are dependent on tech to navigate working from home during the COVID-19 pandemic.

QQQ stock a good addition to investors’ portfolios

With the most profitable tech holdings in the world, QQQ stock would be a strong choice for any trader or investor. QQQ is an ETF that is a one-stop shop for the best tech stocks on the NASDAQ. With TradingSim’s charts and blogs, traders can monitor QQQ and practice trading before diving into one of the most prominent ETFs in the stock market.

Traders have two main options for their accounts: margin vs. cash. When deciding to choose a margin account vs. cash account, there are many factors to consider. In this TradingSim article, I’ll explain the difference between a margin vs. cash account. I’ll also write about how experienced day traders or people who are new to investing can choose the best account for them to have the best trading strategy.

What is a margin account?

If an investor is investing on their own, they may have limited funds. If they need more money, they can deposit cash and a brokerage firm can loan them money, too. That’s leveraged investing for traders. In a margin account, day traders can borrow money to fund their accounts. It’s similar to using credit cards to make purchases when a card company extends credit to a customer.

Ali Hashemian is president of Kinetic Financial. He likens buying stocks on margin to buying a house.

“Using margin to buy stocks is similar to using a mortgage to buy a house. In both instances, investors borrow money to purchase more equity in stocks or real estate,” said Hashemian.

What do brokers like Robinhood charge to trade on margin?

When traders are trading on margin, they’re charged interest on a margin interest loan. In the popular Robinhood app, users are required to have $2,000 in their accounts before they can trade on margin.

In Robinhood’s $5 monthly fee, the first $1,000 of margin is included. If traders borrow more than $1,000, they pay 5% interest on the leveraged investing. For example, if a trader uses $3,000 of margin, they’re charged a daily interest rate of 5% divided by 360 for each day of the trading year.

In that case, $1,000 is deducted from the $3,000. The remaining $2,000 has interest added on to that amount. Then, it’s $2,000 x 5%/360= $0.28 daily interest. While Robinhood charges 5% interest, each brokerage firm has its own interest and may be significantly higher. Investors should check margin interest rates with their firms.

What are the rules for a margin account?

Before an investors trades on margin, there are some rules a trader must follow. When an investor trades on margin, the Financial Industry Regulatory Authority(FINRA) that regulates trade has requirements. FINRA mandates that a trader must have either $2,000 in their account or 100% of the stock purchase prices.

Once a trader has $2,000 in their account, they can trade 50% of the securities they’re going to purchase. For example, if a trader has $2,000 in a margin account, they can buy $4,000 worth of stocks on margin.

After a trader buys an asset on margin, they have to maintain a certain balance in their accounts. A trader has to outright own 25% of assets in their accounts.

A brokerage firm may also ask for a trader’s net worth and income. In addition, a firm may conduct a credit check before an investor can trade on margin.

What are the advantages of a margin account?

If traders need to trade on margin, there are some benefits. There is a potential to profit from trades. For example, a person buys shares of Apple stock for $100,000 with a mix of $50,000 cash and $50,000 margin. If you sell the stock for $125,000, the trader has a $25,000 profit.

If a trader borrows on margin, they can have a brokerage firm give them extra leverage to make larger trades.

Scott Bishop is a certified financial planner with STA Wealth Management. He noted that buying on margin can help investors who need extra financial assistance.

“The margin can almost be like an overdraft line of credit,” said Bishop.

Margin can help bring more investors into trading

Bloomberg writer Nir Kaissar notes that Robinhood is helping more investors get into the stock market with its Robinhood Gold plan.

“One of the things I love about Robinhood is it’s … drawn millions of new people into the market. If we want people to become more savvy about personal finance and investing — and I think we generally say that we do — then I think they need to have the experience of being an investor. I don’t think those are things that you can necessarily learn just in a textbook,” wrote Kaissar.

A Robinhood spokesperson said that the platform is helpful to new investors.

“We believe that broader participation in the markets is more democratic and can bring opportunities to many. Those who dismiss retail investors as ‘gamblers’ or ‘gamers’ perpetuate the myth that investing is only for the wealthy and highly educated,” said the Robinhood spokesperson.

Some financial advisors say margin wins in margin vs. cash accounts

Colby Davis is portfolio analyst for RHS Financial in San Francisco. He encourages clients to buy stocks on margin if they’re pressed for cash.

“We generally encourage [margin accounts] with our clients even if we don’t plan to do leveraged investing with them. Sometimes a client needs money in a hurry, and instead of having to sell securities and wait two days, you can take the money out immediately and sell the securities the next day or the next week. You don’t have to wait as long to get the cash out,” said Davis.

“If you really want to buy an investment and you don’t have the cash instantly available, it’s a quick way to make sure that you have it,” added Davis.

In addition to that benefit, buying stocks on margin can give investors more time to repay the loans. A brokerage firm gives a trader extra time to repay a margin loan. An investor can repay a loan whenever they can as long as they maintain a margin account balance.

Trading on margin better for experienced traders

For some experienced traders, trading on margin can be effective. Tom Watts is the chairman of Watts Capital Partners. He advises that traders use margin if they’re experienced traders and have extra money. The margin can be used for those traders as an emergency fund for transactions.

“For most of our clients, we like to have a margin account even if they never buy stocks on margin because they can transfer money faster,” said Watts.

“With a margin account, they don’t have to wait: They can access cash instantly,” added Watts.

Watts also recommends margin trading if you have time to actively trade and stop losses to limit trading mistakes.

“If you’re in front of your terminal every day, you have strict loss limits and you have a trader mentality, margin investing can be a great thing in up markets. But investors should only do it when the market is going to keep going up and have very strict loss limits,” said Watts.

Buying stocks on margin can postpone capital gains taxes

Nate Wenner is a certified financial planner with Wipfli Financial Advisors. He notes that margin loans let investors postpone paying capital gains taxes. If investors need to make a large purchase, selling investments would lead to capital gains taxes. When traders buy stocks on margin, they can postpone capital gains taxes.

“By taking a margin loan, [you] don’t have any transactions and there’s no tax recognized. In most cases, our clients don’t keep this margin loan for months and years on end…They try to pay it back when they have the cash flow, maybe from a bonus at work,” said Wenner.

In addition to that tax advantage, the interest on a margin loan may be tax-deductible under certain circumstances.

Forex trading on margin is most common

While margin can used for regular stock trades, forex (foreign exchange) margin is the most generous.

Peter Klink is the director of risk management at TD Ameritrade. He said that forex rules gives investors the most leverage.

‘Generally, forex rules allow for the most leverage, followed by futures, then equities. Depending on the product, forex and futures leverage can be at 20:1 or even 50:1 compared to equities’ overnight margin of 4:1,” said Klink.

Adam Hickerson is a senior manager of futures and forex at TD Ameritrade. He noted that the volatility of forex makes it ideal to trade on margin.

“Geopolitical tensions, economic news, central bank policy decisions … a multitude of things move the forex market every day, and so there are several different reasons to consider using margin in forex trading,” said Hickerson.

“Currency prices change every day, meaning margin requirements for forex positions may also change every day. It’s important to understand that if the base currency is anything other than the U.S. dollar, the margin requirement is going to fluctuate on a real-time basis as the price of the base currency changes relative to the U.S. dollar,” added Henderson.

What are the disadvantages of a margin account?

While there are advantages to having a margin account, there are drawbacks as well. Scott Bishop is a certified financial planner with STA Wealth Management. He advises against traders, especially new investors, from buying stocks on margin because investors may be too emotional and trade too quickly.

“Should the average investor buy stock on margin?” asked Bishop. “No, because the average investor buys on greed and sells on fear,” said Bishop.

Timothy Hooker is a co-founder and accredited investment fiduciary at Dynamic Wealth Solutions. He commented that experienced traders can trade on margin with minimal risk. However, too much leveraged investing can be dangerous.

“If you’re an experienced trader and know what you’re doing, there’s nothing wrong with using margin. But if you’re really trying to take your account to the moon and back, then that’s where you can blow up your account and really derail your financial plan,” said Hooker.

John Person is the founder of Persons Planet, a trading education and advisory service company. He advises investors not to borrow more than 25% from their accounts to buy stocks on margin.

“A small amount of your portfolio can be used to extract cash for small loans. Borrowing more than 25% of your total portfolio is ludicrous because the market can go down,” said Person.

High interest rates can cause problems for margin accounts

Brian Cody is a certified financial planner with Prudent Financial. He noted that margin interest rates are often higher than for other kinds of debt.

“Interest rates on margin loans quite consistently seem to be 3% or 4% higher than what you would get for a home equity line or some other reasonable type of debt,” said Cody.

Colby Davis is a portfolio analyst for RHS Financial. He cautions traders not to use too much leverage investment before stocks lose value.

“Anything you buy can go down in value, so when you buy investments on margin, you’re exposed to more risks because you have liability in terms of the cash you’re borrowing. You have to make sure your investments don’t lose so much value that you lose more than what you owe,” said Davis.

What do financial experts say about trading on margin?

Many financial experts advise traders to buy stocks on margin with a high rate of return. S. Michael Sury is a lecturer of finance at the University of Texas at Austin. He advocates that traders invest in assets with high returns if they’re trading on margin.

“Take an investment that offers an expected return of 15 percent, but with actual results that might range between 15 percent and 30 percent,” said Sury. “Even if the cost of borrowing is low, say 4 percent, the transaction is very risky.

“On the other hand, if a collection of diversified investments can offer a 10 percent rate of return with a narrower range of 9 percent to 11 percent, then the risk of the transaction has been dramatically reduced,” added Sury.

Expert investor Warren Buffett also has a warning for traders who are practicing leveraged investing.

“When leverage works, it magnifies your gains … but leverage is addictive. Once having profited from its wonders, very few people retreat to more conservative practices,” said Bufffett.

Financial expert Lyn Alden also said that traders should be experts in the industry they’re investing in before they trade on margin.

If you understand your industry and you’re trading something of value, you should be able to use debt to trade more,” said Alden.

“These types of ‘good debt’ give far lower interest rates for people with good credit than the typical margin rates offered by brokers,” added Alden.

Tesla margin requirements impact investors

As Tesla raised its margin requirement from 55 to 79%, there have been consequences for investors. Tesla’s margin requirement is the amount of cash a trader has in their account instead of credit.

Benzinga founder and CEO Jason Raznick noted that he was notified about having to sell his Tesla shares.

“A lot of people that got this message yesterday had to sell shares. Multiple people I talked to overnight were forced to liquidate Tesla shares. Multiple people. And these are people who were positive, up on Tesla, and they had to sell by the close yesterday,” said Raznick.

“This is happening because large institutions are buying shares of Tesla, and brokerage firms want to free up shares to sell these large institutions,” added Raznick.

Raznick said that traders are selling Tesla stock because of their margin.

“There are people selling this stock right now not because they want to, not because they have bad fundamentals; they are being forced to. Including myself and including some others, we are forced to sell stock because of the margin we have on it, and I do believe that represents a potential long-term trading opportunity,” said Raznick.

Investors shouldn’t buy too many stocks on margin, experts warn

Davis also advises traders not to buy stocks regularly on margin.

‘I would only recommend using a margin account for the purpose of having additional flexibility on when you can withdraw cash. But I wouldn’t recommend having a margin account to invest as part of their strategic plan unless they’re working with a sophisticated financial advisor or are a sophisticated investor themselves,” said Davis.

Ali Hashemian says that investors can buy more stocks on margin in a bear market. However, he warns that traders not to buy too many shares on margin when the stock market is down.

“An investor might want to use margin to purchase more shares in a down market. The problem is that nobody can predict the bottom,” said Hashemian.

Jose Remy is a partner at Alvarium Investments. He says investors should only trade on margin if they expect great returns on their investments.

“This should be done when the expected return of the investment being made is greater than the cost of leverage. And when the risk profile of the investment and the client’s overall portfolio is commensurate with his or her risk tolerance,” said Remy.

Financial advisers advise traders to borrow on margin carefully

Many young investors are flocking to trading on margin. Chris Larkin is managing director of trading and investment product at E-Trade Financial.

When it comes to Millennials and Gen Z investors, time is on their side, but that doesn’t mean they can be complacent or act emotionally,” said Larkin.

“Access to the market has never been easier, so investors just embarking on trading should walk before they run. A thoughtful and disciplined approach is key—do your research, set up watch lists, and align your trading strategy with your goals and risk tolerance,” added Larkin.

Borrowing on margin can also create problems, like being on margin call.

What happens when an account is on margin call?

When an account is on margin call, a trader is in trouble. If a trader hasn’t maintained a minimum balance of 25% outright owned assets in their account, they’re put on margin call.

Margin call is when maintenance margin falls below a certain limit

Nate Wenner is a certified financial planner. He notes the danger of trading on margin if investors can’t maintain their margin account balances.

“This makes it a dangerous game to play,” said Wenner.

For example, a trader wants to invest $150,000 in a stock whose shares are $100. A trader invests $25,000 and borrows the rest on margin. A brokerage firm can then institute a 30% margin maintenance on their accounts.

If shares fall to $70, a trader’s margin can fall down to $87,000. That amount may be above the margin maintenance threshold. However, if the stock keeps falling and the margin maintenance account drops to below the 30% threshold, the trader is placed on margin call.

Will margin accounts be in more danger after the quarantine?

Christopher Gerold is president of the North American Securities Administrators Association. He noted that the increase in trading during the quarantine will lead to more margin calls on traders.

‘In the coming weeks, I expect that we will see a significant increase in complaints related to suitability, specifically use of margin in retail accounts. I expect many will have been unsuitable and will require investigations by regulators,” said Gerrold.

Gerrold also noted that more staff will be needed to deal with margin call accounts.

“Processes, procedures, and staff must be in place so that investors can reach their financial professional to ask questions, raise concerns, and discuss investment options. We’ve heard–and these have been very public–about trading delays and crashes of electronic systems at some of the largest broker-dealers in the last couple weeks,” said Gerrold.

What should investors do when they’re on margin call?

If an investor is on margin call, then an investor has to take action. A trader has to have deposit funds to meet the margin minimum, usually within three business days. If a trader doesn’t have the funds right away, they may have to sell stocks in order to meet the margin minimum. Firms may also totally liquidate a trader’s account if they can’t pay off their margin call.

If a trader can’t pay the margin call, a brokerage firm may have to report your debt to a credit agency. A trader’s credit could be negatively impacted for a long time.

How can an investor avoid margin call?

There are ways for investors to avoid margin call. If an investor is able, they should have an emergency fund on hand in case there is a margin call. A trader should also be knowledgable about the margin requirements before buying stocks on margin. In addition to those measures, traders can use stop-loss measures to prevent themselves from plunging into debt. With stop-loss measures, traders can limit their margin losses.

As TradingSim’s own Al Hill told Mint, traders shouldn’t use all of their margin when buying individual stocks. Only a small percentage is best fro each individual trade, especially for beginning investors.

“Only use 10 percent of your margin. For example, if you have $100k cash, which would afford you $400k in margin, only use $40k on any one position”, said Hill.

Where do investors trade on margin?

Some investors have personal accounts of trading on margin. In one example, Zaki Ahmed trades with Oanda. He uses a lot of leveraged investing when he makes trades.

“Oanda recommends a moderate leverage amount of 20 to 1 or lower. My leverage is almost 50 to 1,” said Ahmed.

While Ahmed trades on margin, he admits that it’s wreaked havoc on his finances.

“I’ve been through the ringer in terms of all manner of investment and gambling. To be honest, I regret that I’m doing this now. I won’t tell you how much I’ve lost but it’s in the thousands,” said Ahmed.

If traders want to trade on margin, they have to exercise a lot of caution and be prepared for losses.

How can investors trade with a cash account?

If trading on margin is too risky, investors can trade using cash accounts. In cash accounts, investors can simply buy stocks with their available cash. For instance, if a trader has $1,000 in an account, they can only buy $1,000 worth of stocks.

What is the difference between a margin account vs. cash account?

While a trader can trade right away by borrowing on margin, having a cash account requires an investor to have more patience.

Brandon Herman is the senior manager of margins clearing at TD Ameritrade. He commented on the differences between the two different kinds of accounts.

“In a cash account, if you buy and you sell, you have to wait for that sale to settle before you can use the funds again. Some clients may find it worthwhile to use a margin account every now and then to be able to buy what they want to buy, when they want to buy it, and borrow with margin for a short period of time,” said Herman.

What are the benefits of using cash accounts?

In contrast to margin trading, cash accounts are a one-time investment. Patrick Lach is a certified financial planner and assistant professor of finance at Indiana University. He noted that investing on margin requires extra cash to maintain an account. On the other hand, cash accounts don’t have that requirement.

“This is a major risk of margin investing. It may require the investor to come up with additional cash to maintain the position. This is not an issue with cash accounts—they only require a one-time, up-front investment of cash,” said Lach.

He also noted that when there is a margin call, investments have to be sold and lose value quickly. However, Lach noted that with a cash account, investors have time to recover from their losses with cash accounts.

“With a cash account, the investor has the luxury of waiting for a stock to recover in price before selling at a loss,” said Lach.

What are the disadvantages of a cash account?

While there are advantages to having a margin account, there are drawbacks as well. If a trader wants to trade in a hurry, they’re unable to with a cash account. Cash must settle before a trade officially takes place.

For instance, if a trader uses $500 in their account to make a trade on Monday, they can’t make a trade with that same $500 until Thursday at the earliest. That delay is called a settlement and is part of the transfer of assets to a buyer’s account and cash to a seller’s account.

Another problem with cash accounts is having good faith violations. A good faith violation is when investors make trades before cash has settled. If traders make these violations three or four times, they can put into a 90-day trading restriction.

Dan Merritt, manager of margin risk at TD Ameritrade, advises investors to exercise caution before having good faith violations.

“It’s not like there’s a lot of wiggle room for exceptions, so it’s best to know how to stay on the right side of the regulations,” he said.

Merritt also advises traders to call their brokerage firms before they reach the 90-day trading restriction limit.

“If you call us after you do something, it’s harder for us to assist you, so calling us and asking what will happen in a situation is sometimes better. That way we can walk you through all of your choices at that point,” said Merritt.

What other violations can jeopardize a cash account?

In addition to good faith violations, free riding violations can hinder a cash account. Freeriding occurs when a trader tries to buy or sell a stock without depositing enough funds before settlement. One way to have a free riding violation is to use the same capital on the same day on two separate trades. A trader can buy a security and sells it before settling the first purchase.

For example, a trader has 500 shares of Ford (NYSE:F) with shares at $20 on Thursday. A trader needs $10,000 to settle the transaction. On Friday, Ford’s stock rises to $25. As a result, the trader earns $25,000. However, if a trader didn’t settle the original trade without the new sale’s profits. If an investor can’t settle the first trade, then the trader is freeriding.

If a trader is freeriding, a brokerage firm can freeze a trader’s account for 90 days. In the middle of the freeze, a trader can use a cash account to make trades. However, a trader has to settle all purchases on the trade date.

How to cash in a margin account

In a margin vs. cash account, cashing in a margin account takes certain steps. A trader can close their account and completely cash out their margin accounts. First, an investor has to sell their investments. Then, a trader has to make sure their margin loan balance is at zero. Then, an investor has to close the officially close the account through a broker.

If an investor wants to cash out their margin loan balance, there are steps that traders can take. They can request a cash withdrawal with available funds minus the margin loan amount. Once the cash is withdrawn, a trader can make sure the money is transferred to another account. Then, an investor’s brokerage margin account shows the next margin loan balance.

Which account wins in margin vs. cash account?

When choosing between a margin vs. cash account, a trader has to make many considerations. If a trader wants to day trade often without fear of pattern day trader status, a cash account may be best. A cash account may also be best for traders who have the patience to wait until their settlement period of two or three days.

If a trader wants to trade right away but has limited funds, margin trading may be best for them. Also, if a trader wants to trade volatile and high-risk assets like forex, margin trading may be their best option.

Ultimately, a trader has to make the best decision for them about deciding between a margin vs. cash account.

Regardless of which account a trader uses, TradingSim can help traders whether they choose a margin vs. cash account. With TradingSim’s blogs and charts, traders can find the best accounts for them to potentially increase their profits.

The Head and Shoulders Pattern: How to Trade Tops and Bottoms

What do Head and Shoulders Chart Patterns Look Like?

What Do Inverse Head and Shoulders Chart Patterns Look Like?

Identifying the Neckline in a Head and Shoulders Pattern

What do Head and Shoulders Stock Patterns Foretell?

How to Trade a Head and Shoulders Chart

When should you open a position?

Where should you place stop-loss orders?

When should you collect profits – Reverse Head and Shoulders Pattern Example 1

Reverse Head and Shoulders Target Example 2

When does the Head and Shoulders Pattern Fail

Day Trading Head and Shoulders Tops

Key Summary Points on Head and Shoulders Chart Patterns

How Can TradingSim Help

What is a rollover IRA?

How can you rollover an IRA?

IRA to HSA rollovers are possible

Young people are at an advantage with IRA rollovers

How to Roll Over a 401k to an IRA

More advice about 401k to Roth IRA conversion

More advice on rolling over 401k to IRA

Timing is key for an IRA rollover

Account holders should exercise caution

Should an account holder rollover an IRA in an economic downturn?

Find a reputable IRA manager for rollovers

Some advisors want 401k rollovers into IRA’s

What do financial advisors say about rollover IRA’s?

What are some IRA rollover rules?

What is the timeline for an IRA withdrawal?

Should a person rollover an IRA during the economic downturn?

Fidelity changes IRA rollover rules

Are IRA rollovers necessary?

Demographic changes causes Fidelity rollover changes

Fidelity offers more flexibility for IRA rollovers

Advice for retirees on IRA rollovers

1. Amazon the top pick for IRAs

2. Proctor and Gamble

3. Apple

4. Google

5. Tesla

IRA rollovers can help save money

What are the rules for a Roth IRA withdrawal?

What are the penalties of early Roth withdrawal?

Some financial advisors say not to make Roth withdrawals

Consulting a financial advisor is key to Roth

Can a Roth IRA withdrawal buy a home?

What is the difference between traditional and Roth IRA withdrawals?

Roth IRA withdrawals have more options for account holders

CARES Act helps make Roth IRA withdrawals easier

Roth IRA withdrawal can benefit account holders

Relaxed limits on Roth withdrawals are key in COVID-19 era

Financial expert Suze Orman says Roth IRA withdrawals may not be wise

Top 10 Stocks for Roth IRA investors

1. Apple

Apple’s new products will help stock rise

2. Amazon

3. Netflix

4. Zoom

Zoom will grow as a Roth IRA withdrawal supplement

5. Google

6. Microsoft

7. Gilead

8. Pfizer

Analysts says Pfizer is a buy for Roth IRA’S

9. IBM

10. NVDA

Roth IRA withdrawals can be beneficial with proper planning

What is the difference between a Roth IRA vs. traditional IRA?

What are the advantages of a traditional IRA?

What are the downsides to a traditional IRA?

Financial experts say Roth IRA has advantages

Financial experts say people can use Roth to save

Financial experts recommend Roth vs. traditional IRA

Financial experts say to talk to advisors before converting to Roth vs. traditional IRA

Financial experts say Roth IRAs have tax benefits

Roth IRAs have advantages for young investors

Financial experts recommend Roth IRA for young people

What are the disadvantages of a Roth IRA vs. traditional IRA?

How can a person make a Roth conversion?

How can Roth IRA’s help with homeownership?