Pending more detail

:speech_balloon:

There needs to be an option for brokerage accounts, once retirement occurs (or any milestone) to change from reinvest dividends to dont reinvest dividends. And the transfer to another account isnt adequate for reasons below.

The reason that the fix of transferring accounts doesn’t work is because if you convert all brokerage accounts to transfer to retirement brokerage accounts on retirement and having those retirement accounts not reinvesting dividends is that the feature isn’t smart enough to realize that you may have more dividends than you actually need to live off of for that year! If that happens, the net end assets will actually go DOWN from not re-investing dividends!

To fix this, just change in the account page for an individual account not only the reinvest dividends check box but also a milestone for it to work off of, if needed and also a check box for only don’t re-invest dividends up until what is actually needed for expenses that year. That would make this feature bullet-proof.

1 vote

Tagged as Suggestion

Suggested 02 March by user Jason Wolf

Moved into Pending more detail 10 March

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  • 02 March Jason Wolf suggested this task

  • avatar
    Shawn @PL

    This is really two different things, I think.

    1. The transfer method cleanly lets you change the setting. Albeit, not having to do the transfer would be better UX.

    2. But I think you’re looking for a new setting that doesn’t say “reinvest” or “don’t reinvest”, you specifically want to say, “only reinvest dividends that are not needed for current year spending” – marketing guys will have to tighten up that language, but does that sound right?

    As we discussed on Discord though, if your Cash Flow Priorities are set to reinvest unused funds back into Taxable, it won’t make a big difference in most cases, but I could see the narrow desire for this

    e.g. 1. if you have priorities, you DO NOT want to feed from your dividends (probably rare)

    1. more likely, if you have multiple Taxable Accounts with different growth/div or bond profiles, and you don’t want the excess to go into the other account.
    10 March

  • 10 March Shawn @PL approved this task

  • 10 March Shawn @PL moved this task into Pending more detail