No. of Recommendations: 2
To meet allocations goals, this could change like the wind.

In that case, you could make a good argument that dividends from the bond funds should go into a money market or some sort of sweep account, and then when the balance in that money market or sweep account builds up to the minimum needed for a subsequent investment, make that investment in whichever fund you need to build up as per your asset allocation plan.

The one tricky thing is that many funds need at least $25 or at least $100 to make an additional investments, so those dividends may remain idle for a while. On the other hand, generally most mutual funds do not have a minimum amount for reinesting dividends so even a small dividend reinvestment can start working for you immediately. So you might want to double-check whether or not this may affect you.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement