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Greetings, Mastevens, and welcome.

<<Since my current employer doesn't have much of a retirement plan, I'm going to rolling over my 403b from my last one into something. I'd also like to continue monthly contributions, even if they're not deductible.

After reading the book and searching the site I'm left with the question of how to do this. Do I make monthly cash deposits then buy securities only once a year? Quarterly? If I buy monthly (or quarterly) do I keep buying the same stocks, or do I buy whatever the current 4 are then review each purchase a year later? Thoughts?>>

First, you've left your old employer with whom you had a 403b plan. As you know, those can only be invested in an annuity or mutual funds. Therefore, to invest in stocks such as those in the Foolish Four, your first step is to arrange for a transfer of your 403b funds to a self-directed IRA. Any discount broker and your old benefits administrator can guide you through this process. You want to arrange for a custodian-to-custodian transfer to avoid any tax problems. That means you do NOT want to have the 403b money sent to you in a check made out in your name. Don't worry, both the broker and your benefits administrator will know how to set this up.

Once the self-directed IRA is set up and the money is in the account, you are free to trade. If you add money to the account, as you pointed out, it will be on an after-tax basis, but any earnings can accumulate tax free until withdrawn. However, because this account is now an IRA, you can only contribute up to $2K per year. For that reason, it won't make much sense to try to purchase a new Foolish Four each quarter. We believe that portfolio costs should never be more than 2.5% of your investment each year. At a discounter, that means (depending on which one you use) you need between $2K and $4K per Foolish Four portfolio to start. Accordingly, IMHO your best bet is let your monthly deposits sit in your broker's money market account until you reach your annual trading date for your first FF portfolio. It will earn interest, and will reduce your costs of investing in the long run.

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