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Old 08-26-2015, 12:55 PM   #21
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For our taxable accounts, we take dividends and capital gain distributions in cash. However, our living expenses exceed these dividends and capital gain distributions, so when I rebalance I replenish cash by selling equities in our taxable accounts with the proceeds going to our online savings account, so the capital gains are not reinvested.

I then balance to my target AA by selling fixed income and buying equities in our tax-deferred account. All dividends and capital gain distributions for tax-deferred and tax-free accounts are reinvested.
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Old 08-26-2015, 01:48 PM   #22
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My funds haven't declared capital gains distributions for quite a few years. The dividends I get I just reinvest as I don't use my equity investments for income
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Old 09-02-2015, 11:17 AM   #23
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Quote:
Originally Posted by pb4uski View Post
For our taxable accounts, we take dividends and capital gain distributions in cash. However, our living expenses exceed these dividends and capital gain distributions, so when I rebalance I replenish cash by selling equities in our taxable accounts with the proceeds going to our online savings account, so the capital gains are not reinvested.

I then balance to my target AA by selling fixed income and buying equities in our tax-deferred account. All dividends and capital gain distributions for tax-deferred and tax-free accounts are reinvested.
That's an interesting strategy, thanks for sharing it. I was wondering how I was going to accomplish this when it came time to rebalance my accounts, especially when 2/3rd's are in taxable and 1/3rd is in tax deferred.

I just looked and because of the recent drop in equities my overall AA is 68/32, 75/25 in tax deferred and 65/35 in after-tax. My target is 70/30 overall, and now I'm curious what impact it would have on my total portfolio if I only rebalanced the tax-deferred account to achieve my target AA across both accounts.
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Old 09-02-2015, 11:58 AM   #24
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I take all taxable fund distributions (CG, Div) in cash since they are already counted towards income for tax purposes. I reinvest all CG and Dividends in my IRA accounts. If I have to rebalance (which I rarely do with my wide band) I will sell funds with Cap loses in the Taxable account, otherwise all rebalancing takes place in the IRA accounts.
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Old 09-04-2015, 02:46 PM   #25
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As others have said, I spend dividends and reinvest CG. I am retired and the dividends meet my cash flow needs. I also have a pension and SS.
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Old 09-08-2015, 02:37 PM   #26
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Most of my assets are in tax-deferred, so no particular distinction for tax purposes. All divs, interest, and capital gains are reinvested for now.
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Old 09-08-2015, 03:33 PM   #27
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Cash. If I want more of their stock, I'll buy it separately.
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