haha
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I have generally re-invested dividends in my IRA and Roth, but taken them in cash in my taxable brokerage account. My taxable account holds mostly individual securities. I feel that in IRAs, re-investing is hands down better. My withdrawals for RMDs can easily be handled by drawing down an intermediate term bond fund that I have, or cash if I have any in the account.
I have rarely re-invested dividends in my taxable account, whether the security was a mutual fund or ETF or an individual security. The reason is to avoid extra work figuring out my gain when/if I might sell the security.
I get more dividends and other payouts than I need for expenses. I am unlikely to ever have to sell a security for cash flow, other than from the mutual fund to fund my RMDs that I mentioned above. I have some stocks that I am unlikely to ever sell, and for these I am considering re-investing dividends. One is WY, the timber REIT. They do not squander money. Extra cash goes to astute purchases of more high quality timberlands, paying down debt, or increasing the dividend, so I would not be worried about getting a large position.
If I do start re-investing, then later decide to sell, no way am I ever going to treat each quarterly dividend as a separate lot. Can I just do two groupings, one for all the long term, and another for all the short term?
This is the crux of my question, if I should decide to sell, how much hassle will it be?
Any comments appreciated.
Ha
I have rarely re-invested dividends in my taxable account, whether the security was a mutual fund or ETF or an individual security. The reason is to avoid extra work figuring out my gain when/if I might sell the security.
I get more dividends and other payouts than I need for expenses. I am unlikely to ever have to sell a security for cash flow, other than from the mutual fund to fund my RMDs that I mentioned above. I have some stocks that I am unlikely to ever sell, and for these I am considering re-investing dividends. One is WY, the timber REIT. They do not squander money. Extra cash goes to astute purchases of more high quality timberlands, paying down debt, or increasing the dividend, so I would not be worried about getting a large position.
If I do start re-investing, then later decide to sell, no way am I ever going to treat each quarterly dividend as a separate lot. Can I just do two groupings, one for all the long term, and another for all the short term?
This is the crux of my question, if I should decide to sell, how much hassle will it be?
Any comments appreciated.
Ha