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Author: Srimanta01 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121572  
Subject: Re: IRA contribution question Date: 7/7/1998 4:36 PM
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<<<<<Not for very long, however, if you intend to rebalance as the screen calls for. If the 2 stocks in your wife's account do great (say they're now worth $3K) & the 2 in your account suck eggs (go from $2k to $1.5K, then there is no way to buy a new Foolish Four with equal dollar amounts next year.>>>>>

>>>>Sure there is. Since it's a year later, you're able to make another IRA contribution. Just use that to offset the loss in the portfolio. It's not pretty, bt it works.<<<<<

Actually it doesn't. Since the new contributions are once again $2000 per account, the balance in them is still unequal: $3.5K and $5K. However, I have found that by buying one stock twice (once in each account) you can balance the 4-stock weightings perfectly. Sure you are wasting $16 ($8x2)max per year, but as your account keeps growing, it is a smaller percentage and I think acceptable. Even in the second year, with the total balances equal to $8.5K, $16 is a small price. Cheers!
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