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Subject:  Re: New Roth IRA Date:  12/21/1998  9:24 AM
Author:  TMFPixy Number:  7385 of 88472

BillEuclid writes:

<< Naturally, in cases when next year's FF includes several of this year's FF, you can make do with fewer purchases, but you will never need more than 5 new purchases in any one year.

I don't see the problem. Algebra solution: If IRAs are worth A and B with A greater than B, then buy 2 stocks worth (A+B)/4 in the A IRA, 1 stock worth (A+B)/4 in the B IRA, and the remaining money buys the 4th stock.>>

Putting aside the issue of the extra trading commissions, it's not so much an issue of it "can't" be done as it is one of administrative hassle. It sounds easy on paper, but after three or four iterations it becomes a pain in the rear. That's particularly true the more uneven in amount the two accounts are. If you're willing to put up with the juggling act, using two accounts for a single Dow portfolio is possible; but it certainly isn't fun. It boils down to how willing one is to put up with the needed administration.


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