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TchrP writes (in part):

But I'm not sure that it's a good idea to use a stock index fund as a place to park money until investing it in individual stocks. An index fund is just a basket of 500 (or however many) stocks, and if the money will only be there for a few months, the broker's money-market fund would make more sense to me.

I reply:

I think it does make sense to use the stock market, rather than a money market fund, as a short-term parking place for money while waiting for a Foolish Four rebalance date. Although you have extra risk of losing money, because the index fund will outperform the money market fund on average, you will have more money after 20 years if you consistently use the index fund rather than the money market. --Bob
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