Dividend Reivestment
Is it advisable to continue reinvesting stock dividends when you are up in age especially with the downturn of the market or put the money safely elsewhere?
Terry Says
That all depends on whether you are still trying to build up your assets, or whether you’ve decided it’s time to live on your dividend income! It’s easy to stop the reinvestment plan, and direct them to send you the money instead. But if you hold those stocks in a retirement account, the dividend will go right into a money market fund inside your IRA. Then you can take withdrawals as needed, or on a regular basis once you’re age 73 and reach RMDs.
