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I'm new to investing and am thinking about establishing an IRA with the foolish four approach. Should dividends be reinvested or saved in cash until I balance? Also is the timing of starting the account as important because I won't be withdrawing anything for at least 30 years? Thanks.
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Greetings, Erglrg, and welcome. You asked:

<<I'm new to investing and am thinking about establishing an IRA with the foolish four approach. Should dividends be reinvested or saved in cash until I balance? Also is the timing of starting the account as important because I won't be withdrawing anything for at least 30 years? >>

Unless your broker offers some kind of no-fee dividend reinvestment feature (and some like USAA Brokerage Services do), then Fools let the dividends accumulate in the broker's money-market-like sweep account drawing interest until it's time to rebalance the portfolio. As to when to begin the program, there's some evidence that shows marginally better returns if the portfolio is begun in Dec/Jan. Personally, I don't let the start date worry me too much.

Regards….Pixy
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If you have just put in 1998 money and after 6 months you are putting in 1999 money. At that point you may want to start a second program with the dividends of the first.
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Thanks for the advice. I'm changing jobs and contributed to an employer plan for 1998 so this account will be solely for 1999. I was going to use Waterhouse to make my online trades, they do offer no fee dividend reinvestment.

I'm a newbie to all this and have been enjoying reading the posts and tracking some ideas I've had - looking forward to more...
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