A few months ago, I discovered that Roth IRA contributions (but not earnings) can be withdrawn tax free and penalty free! This means that a Roth IRA could double as an emergency fund, allowing me to allocate more money towards retirement accounts. Zecco’s service has been satisfactory, so I decided to open another account there.
My first item of business will be to move any dividend-yielding positions into the Roth IRA. A post against dividend stocks came across my Google Reader account, but I’m not at all convinced the arguments make sense and I think he is stretching Modigliani-Miller when reality does not really fit the assumptions. But, then again, I’m also thinking about loading up on Northstar Realty Finance, so I may be crazy.
I have been watching NRF for a while and feel it’s been disproportionately affected by the sub-prime fiasco & credit crunch. With the real estate sector a complete mess and the forced closing of long positions due to record levels of redemptions and hedge fund deleveraging, valuation is especially out of whack for stocks with lower volume and a high level of institutional ownership. I have not read the company prospectus or listened in on the quarterly conference calls, so right now it’s just my gut feeling. I’ll also add a disclaimer that I am not a financial adviser and this is not financial advice!
In truth, I think it would be wise to hold off on investing until VIX stabilizes below 50ish for a week or so. The small investor is likely to be slaughtered in the current environment. However, I’m willing to speculate a bit of money and get some action on the ridiculous volatility. Yes, I would consider it speculation, not investing 
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