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I have just moved a traditional IRA account from mutual funds into a Brokerage account. Part of my strategy is to invest in the foolish four.

My question is:

Since this is an IRA account, do I have to re-invest any dividends back into my IRA account?

your dividends will go to your IRA account.

something to keep in mind is whether or not you want dividends to be reinvested in the stocks you own (similar to mutual funds). if your account allows this and your securities are eligible, you will most likely end up with partial share. this can be an issue when rebalancing. your brokerage account may not let you sell partial shares. however, those partial shares will probably be liquidated soon after you sell all your whole shares.

i ran into this problem. due to my partial shares not being liquidated until several days after rebalancing my FF portfolio, i had a few hundred dollars that i couldn't add to my FF. now, i just have the dividends remain in my clearing account as money market shares.

just something to keep in mind.

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