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Author: Mark0Young Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35468  
Subject: Re: Reinvest or not Date: 4/22/2003 1:14 AM
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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.
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