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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: Re: FF and IRA Date: 3/9/1999 10:26 AM
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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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