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It my opinion or based on what I've read that makes most sense to me, both happen. The afterlife is really the 'live between lives' and we have as many reincarnations as we need to progress spiritually and gain more experience and wisdom as a soul. Some souls may need many, others not so many. After we stop reincarnating, perhaps we moved on to these higher afterlife planes on a permanent basis and no longer need to reincarnate on earth.
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