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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: LemonHead who wrote (6947)2/27/1999 6:27:00 PM
From: Bernie Goldberg   of 18928
 
Hi,
To: +Bernie Goldberg (6940 )
From: +LemonHead Saturday, Feb 27 1999 11:44AM ET
Reply # of 6950

Bernie & Tom, You can get the dividends in cash or if your broker provides it, they can be reinvested.
I guess I'm missing something here. Why wouldn't you place your cash reserves here? It appears that you would make more interest for AIM.

Let's say you wanted to use GSF for a supply of cash and you needed $7000 a year of income. You would invest $69,300 in GSF. Assuming a rate of 10.1% you would get a monthly dividend check of $583.27. i have my broker put this in the moneymarket fund and we write checks against it. This way we earn about 4.5% interest on the money until we need it. Every little bit helps. I believe Tom runs an AIM program with GSF and about 10 % cash. The price doesn't change that much at least in recent history, nor has the dividend. The reason you would investing in GSF or some other Closed End Bond Fund would be for an income stream, not to see it appreciate.
hope this helps,
Bernie

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