Why You Shouldn’t Automatically Reinvest Dividends

If you’re new here, you might want to learn what this site is about.Please consider signing up to receive free updates via RSS or e-mail.Adjust Text Sizesmall medium bigWhy You Shouldn’t Automatically Reinvest DividendsWritten by Nickel – 13 CommentsWhy You Shouldn’t Automatically Reinvest DividendsOver the past several weeks, I’ve spent a lot of time streamlining our finances. As part of this process, I went into our taxable investment account and shut off the automatic dividend reinvesting feature.I know, I know… Dividend reinvestment makes up a huge percentage of investment gains. On top of that, I’m a big fan of automating your finances. So what gives?To be fair, we still automatically reinvest dividends in our tax advantaged retirement accounts. But out in the taxable world, there are several good reasons why you should have your dividends paid to cash and then reinvest them manually.

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