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Subject:  Re: Dividend Reinvestment Date:  8/16/1997  11:04 AM
Author:  TMFPixy Number:  177 of 88533

Yo, Triniman.

<<Thanks Pixy for the IRA advice that you gave to me earlier. I am about to tranfer my IRA to Discover Lombard which allows free dividend reinvestment in stocks. Which makes more sense with a F4 portfolio- reinvest dividends or place dividends in market sweep? >>

Each to his or her own, but given the opportunity this Fool prefers to reinvest the dividends at the time they are paid. That works to your advantage when the market for those shares is going up, but could be a disadvantage if it's declining. Despite the latter, over the long term I believe reinvesting will win out over a sweep account's returns.


P.S. Sorry about the lateness of this reply. I was in the wilds of Missouri this week where they barely had phone service let alone net access. :-)

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