Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 05-18-2014, 09:15 AM   #21
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,411
Good point I had heard of but forgotten about.
__________________

__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-18-2014, 10:28 AM   #22
Thinks s/he gets paid by the post
David1961's Avatar
 
Join Date: Jul 2007
Posts: 1,074
The decision does not have to be an "all or nothing". Assuming you don't need all of the distributions to live off of, you could have the distributions of one fund go to a money market fund and reinvest the distributions of the other fund. The main thing is you have to maintain a positive cash flow. Of course, you could also take all distributions as cash and then reinvest some of them later, if you choose.
__________________

__________________
David1961 is offline   Reply With Quote
Old 05-18-2014, 10:35 AM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,457
Good point, Animorph! I got bit once by forgetting that I had reinvesting turned on and then took a tax loss on a fund. Oooops! What was disallowed was tiny, but it always makes the Schedule D more complicated.

I have found that even if I don't need all the distributions for annual withdrawal, I usually then them for rebalancing - that is, they would be directed to a different fund, so more tax efficient to let them accumulate in cash.
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is offline   Reply With Quote
Old 05-18-2014, 01:22 PM   #24
Thinks s/he gets paid by the post
 
Join Date: Nov 2009
Posts: 3,859
Quote:
Originally Posted by David1961 View Post
The decision does not have to be an "all or nothing". Assuming you don't need all of the distributions to live off of, you could have the distributions of one fund go to a money market fund and reinvest the distributions of the other fund. The main thing is you have to maintain a positive cash flow. Of course, you could also take all distributions as cash and then reinvest some of them later, if you choose.
Good point. Since I ERed in 2008, I have changed some of the distribution options on the smaller funds I own, sometimes reinvesting them, sometimes taking them as cash depending on what I need to cover my expenses. One of my funds in a stock fund which pays dividends every quarter, not every month. There, I can take the distribution in cash if I know I will need it in the next few months should I go on a spending spree like I did in Dec2013-Jan-Feb of this year and needed the April distribution to help cover my expenses.
__________________

__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Portfolio Realignment/Liquidation: When to reinvest younginvestor2013 FIRE and Money 10 03-20-2013 04:16 PM
Reinvest Capital Gains? John Galt FIRE and Money 3 05-01-2010 05:18 PM
When in dist. mode- reinvest div & int & sell shares or take div & int in cash? cashflo2u2 FIRE and Money 12 12-11-2008 04:25 PM
Bond Funds: Do they distribute money during the year? Shabber2 FIRE and Money 6 03-04-2008 07:03 AM
Mutual fund: better to reinvest cap gains/dividend soupcxan FIRE and Money 4 11-08-2004 01:00 PM

 

 
All times are GMT -6. The time now is 01:28 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.