I wanted to note that the documentation is incorrect found at http://docs.shopify.com/themes/liquid-variables/paginate, , which is good for me. Essentially after reading a post on Stackoverflow which lead me to github documentation which reaffirmed my assumption that I could in fact wrap the For loop with Pagenation.
For some reason the For Loop was not accessing my smart collection correctly, so I ended up just changing it to collections.all.products.
{% paginate collections.all.products by N %} {% for product in collections.all.products %} {% comment %} code here {% endcomment %} {% endfor %} {% endpaginate %}
Thanks Ben for keeping me focused on the Paginate Documentation/Path