Youngblood
Recycles dryer sheets
Is there a thread about reinvesting dividends (on this site)? I did a quick search on my lunch break, but I couldn't find anything.
Basically, I want to know what the general consensus is about reinvesting your dividends. Currently, I just have mine go back into my funds (automatically), so I'm not paying taxes on them now; however, I want to begin setting up a taxable investment account.
Quick snap shot of what I' m doing now:
1. Vanguard 401K = 13% of income (not maxed out yet)
a. Company match 4.5%
b. Company stock 5% of yearly income
2. Roth IRA = $5500 every year.
3. Taxable account = 0%
I'm a spreadsheet guy, so I have stretched my dollars as much as I can or willing to (for now anyways). I was thinking I could take the dividends and begin a taxable account, or just wait until my house is paid off in about 8 years and start then. I would rather start sooner on the taxable account, but I just don't know what kind of pitfalls (if any at all) are out there with taking out dividends now and reinvesting them into taxable account.
Options for starting a taxable account:
1. Take any additional yearly raises and begin a Roth 401K (Vanguard) , with our without dividends ().
2. Wait until home is paid off in about 8 years and replace mortgage payments with investment payments to a taxable account.
a. My plan is to retire in 14 years, so that would only leave me about 6 years on investing
3. ? - any thoughts
Basically, I want to know what the general consensus is about reinvesting your dividends. Currently, I just have mine go back into my funds (automatically), so I'm not paying taxes on them now; however, I want to begin setting up a taxable investment account.
Quick snap shot of what I' m doing now:
1. Vanguard 401K = 13% of income (not maxed out yet)
a. Company match 4.5%
b. Company stock 5% of yearly income
2. Roth IRA = $5500 every year.
3. Taxable account = 0%
I'm a spreadsheet guy, so I have stretched my dollars as much as I can or willing to (for now anyways). I was thinking I could take the dividends and begin a taxable account, or just wait until my house is paid off in about 8 years and start then. I would rather start sooner on the taxable account, but I just don't know what kind of pitfalls (if any at all) are out there with taking out dividends now and reinvesting them into taxable account.
Options for starting a taxable account:
1. Take any additional yearly raises and begin a Roth 401K (Vanguard) , with our without dividends ().
2. Wait until home is paid off in about 8 years and replace mortgage payments with investment payments to a taxable account.
a. My plan is to retire in 14 years, so that would only leave me about 6 years on investing
3. ? - any thoughts