Rookie PP Stock Question
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Rookie PP Stock Question
I have my 25% stock allocation set up with Fidelity's S&P 500 Fund (Spartan Deluxe Supreme, or something like that). These funds always reinvest dividends, correct? Or do some folks set them up within the PP so that the dividends just get thrown out as cash? Any plus or minus to having the dividends reinvested? Sorry to bother you with such a basic question. Will try to challenge you on my next post. Thanks.
NEI
I don't know if the NEI abbreviation is currently in use in cyber-communications or not but it should be. If TMI is too-much-information, NEI, is not-enough-information.
Are you talking about taxable or non-taxable accounts?
If taxable you generally avoid dividends if you can unless you like the idea of forking over some of your profits to the government as your civic duty. If non-taxable I don't see where it matters.
(P.S. - with Fidelity you can click on year-to-date tax information in your taxable accounts and see if you are accumulating any taxable income).
Are you talking about taxable or non-taxable accounts?
If taxable you generally avoid dividends if you can unless you like the idea of forking over some of your profits to the government as your civic duty. If non-taxable I don't see where it matters.
(P.S. - with Fidelity you can click on year-to-date tax information in your taxable accounts and see if you are accumulating any taxable income).
Last edited by ns3 on Tue Mar 04, 2014 7:26 pm, edited 1 time in total.
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Ad Orientem
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Re: Rookie PP Stock Question
The usual advice is to dedicate any dividends to the cash portion of the portfolio. This is primarily to minimize the frequency of rebalancing which is usually a taxable event. Off the top of my head I don't know what the Spartan funds do. If you are uncertain what is going on with your fund/portfolio just contact your broker.
Trumpism is not a philosophy or a movement. It's a cult.
Re: Rookie PP Stock Question
Thanks ns3 and Ad Orientem. NEI. Sorry about that. The stocks and LTTs in my PP are all in either tax-deferred (mostly) or tax-free accounts. Appreciate your help.
Re: Rookie PP Stock Question
Sounds like a mighty tasty pizza...barrett wrote: I have my 25% stock allocation set up with Fidelity's S&P 500 Fund (Spartan Deluxe Supreme, or something like that).
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Sam Brazil
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Re: Rookie PP Stock Question
I think I read in one of HB's books that he advocated non-reinvesting dividends because it's a forced reallocation to stocks, which may not be what you want to do.
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Libertarian666
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Re: Rookie PP Stock Question
Reinvesting dividends also makes for a messy tax return due to all the tiny lots.Sam Brazil wrote: I think I read in one of HB's books that he advocated non-reinvesting dividends because it's a forced reallocation to stocks, which may not be what you want to do.