Re: Can 401k be used to fund ETF - no penalty?
Offroad,
There are lots of discount brokerage houses that will take your money. I am not in your position - having 401(k) assets that can be transfered to a self-directed IRA - so I really have not thought much about it. I use my Schwab account for safe money. I don't do much trading in it.
However, by reading your messages I do have a concern. You have assets set for retirement that is obviously for the long term future but you want to speculate with them. I know there are entire asset categories that TSP does not have - but should. Say REITS, commodities, cash, emerging growth, and sector funds. If you treat your TSP and your new self-directed IRA as a whole you could set up a very well diversified asset base that could survive 2008 crashes and do well in 2013 booms. On the other hand if you 'invest' your retirement self-directed IRA in Russian oil companies, high flying medical companies, shorting bonds, etc. than you are not investing for retirement. Best guess in that case is that a 'poacher' like BirchTree, Frixxxx, JTH, Intrepid, CH and many others will be on the other side of your trade and do quite well. I use 'poacher' in a family way - yuk, yuk. Information is the key, knowledge is your friend, and assets are important. Personally, I would ensure a stable and good retirement and then play with the extra loot. That is where I am going... Than I too shall poach
Lookin' up at the 'G Fund'!!!
Bookmarks