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Dividend Reinvesting? Thoughts?

is it a good idea to automatically reinvest dividend and capital gain in mutual funds or should one do on your own at appropriate time?
One of the most common problems to face Seniors is Taxes. Aside from SS and RMD both of which you must follow the tax laws pertains to income. But if you have investments, there is a huge choice. First there is 15-20% Fed tax on Qualified Dividend. Then ETFs,CEFs that are tax optimized. Then there’s Return of Capital taxed at 0%, and Confusing as it is forms K1 if you do not understand these it will pay you to get up to speed on taxes or consult someone that can help. Don’t make the mistake of being in the wrong stocks and paying 100% taxable income because you simply fell in love with some stock you’ve owned forever.
I believe that your individual situation should guide you. For me, I have almost all of my retirement funds in a Fidelity ROTH account and virtually all my holdings ( about 25 issues ) are dividend paying stocks, REITS, BDC's, MLP's, & others.

I have set up my account to have dividend payments paid into my ROTH account. Then I determine which of the holdings I have are the best value to add to. Some of the folks on this forum use DRIP as a way of reinvesting dividends and for them it works fine. For me I like a little more control.
I generally do not for equities. But:
1. In relatively small accounts, I do reinvest income so I do not need to deal with reinvesting small dollar amounts.
2. For fixed income, I do reinvest income.
3. For equities in general, I have an established dollar allocation for each asset class.  If a given asset class (e.g., small caps) move outside of my established tolerance, I buy a little more (if it has gone down enough) or sell a little (if it has gone up enough) to bring that asset class back to target.  The tolerances were set based on past history without the dividends automatically reinvested.
My entire Roth is made up of entirely REITs, set up to DRIP. I have no paperwork to fill out and never will. Meanwhile, as one example, NLY has increased 10X from 2000 to 2018. Now, the kicker. The share price is about the same now as in 2000. That's over 13% during the past 18 years. The power of compounding is a beautiful thing.

Load your IRA with REITs and keep your other investments elsewhere.
“Load your IRA with the right Reits Or mReits“. That’s going to take an advisor or subscription to an advisor service . You can follow Scott Kennedy or others for free on Seeking Alpha. Right now he’s recommended CHMI and IRV earning around 10%.

Another ++ to Reits is in the 2018 Tax laws it gives a 20% tax break on Reits a graduated scale if you earn more than $120K as a couple.
If I buy a "no commission" ETF and it becomes a "commission" ETF and I still consider it a good buy, I reinvest the dividends. Otherwise, I like to make a choice with my dividends.
I don't invest in ETFs much because along with the good stocks they contain numerous dogs. Sure they go up in a good Bull market.  But the dogs will show up in a Bear market .  The only ETF I would consider is based on the S&P .

What is really good to look at is CEFs that sell at a discount . However this like ETFs cannot be done in this present market without some good advice.
When the current price moves within 1% of my purchase price I set it to reinvest. Right now my bond funds are on reinvest for instance. When the market price is high, it's set to cash and I accumulate funds to reinvest manually. When I first make a purchase, if it's a dividend payer, I set it to reinvest and watch it.

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