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Subject:  Re: Investing Frequency Date:  10/27/2007  8:25 AM
Author:  FoolNBlue Number:  4463 of 5260

Hey all, I'm wondering how often you think I should invest into my taxable brokerage account. Currently, I am setting aside the money and investing it once each quarter (this is on top of investing in our 401k/403b plans). I budget to set aside $2000/month and then I am usually able to come up with an extra $1000/quarter on top of that.

I don't think the number of transactions matters. In my taxable account I have multiple DRIPS (no longer adding to the positions) and an index fund. Over 6 years I have accumulated over 500 shares in 109 transactions in my taxable mutual fund (to include reinvestment of dividends and cap gains distributions). I keep a simple ledger style spreadsheet that makes figuring out cost basis of sales very easy (I use FIFO for ease but you can pick whatever lot you wish to sell). Not a lot of work... actually, other than entering each transaction when purchasing, there is no more effort in figuring out cost basis when selling with multiple transactions.

I invest in my taxable account once a month with occasional extra purchases; however, I currently have more cash on hand than I'd like and have set up automatic investments to purchase every 10 days for the next 15 months or so (I prefer to DCA and this will also keep my cash levels more stable than a lump purchase and then reaccumulating cash through savings).

My vote, do what you want without worrying about it. Just be disciplined enough to punch your purchase info into a simple spreadsheet when you get your statement. All you really need to capture is the date, amount invested, and number of shares purchased.

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