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https://boards.fool.com/i-just-started-taxable-investing-but-my-plan-is-26020528.aspx
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| Subject: Re: Investing Frequency | Date: 10/22/2007 9:51 PM | |
| Author: FIgirl | Number: 4462 of 5260 | |
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I just started taxable investing, but my plan is the same as yours, Acme - to invest quarterly to minimize transaction-related record keeping. I also specified that dividends and distributions be paid into a sweep account instead of automatically reinvested, again to minimize the number of transactions I need to keep track of. The money that's "waiting" to be invested is in a tax-exempt MMF with a taxable-equivalent yield of 5.4%, so it's not lying completely fallow. Another reason to do less frequent but larger amount investments is if you are investing via an ETF with a brokerage that is not commission-free. I'm not there yet, but if/when I invest with ETFs I will also minimize the frequency of investments to save on commission costs. BTW, I made my first ever taxable investment on Friday Oct. 19 -- and the next day realized I'd made my first jump into the market on the 20th anniversary of the '87 Black Monday crash. I kind of like that! FIgirl |
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