Suggestions

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Add selection to dividend reinvestment for only a certain time period

It would be nice if I could set accounts to do dividend reinvestment only until X age or until Retirement, then it would go back to not reinvesting the dividend which would allow them to become part of the cash flow in those years and reduce drawdowns from other accounts if the dividends are covering expenses.

6 votes

Tagged as Suggestion

Suggested 22 February 2023 by user David K

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  • 22 February 2023 David K suggested this task

  • 23 February 2023 Kyle Nolan approved this task

  • avatar
    Tommy Mhire

    This! I can’t model turning off DRIP on my taxable accounts and using the dividend first as income, then a tax deferred account. Currently the model makes additional withdrawals from the tax deferred accounts just to pay the taxes on the dividends. Taxable dividends should be another drawdown category.

    19 July 2023
  • avatar
    lambda3

    +1 to this feature.

    I’ve turned off dividend reinvestment in my taxable account to prevent making unnecessary additional withdrawals. However, if I do this, in the years before retirement, the dividends do not flow through the cash flow priorities like I would expect. I would have expected them to end up being invested in my taxable account (where I have it set to maximize contribution). Instead, it appears to fall through to “Save anything left over” option.

    Then, once I’ve retired, even though I have set the drawdown to use both of the cash options first, it maintains a ~20k cash reserve. It’s described as “Cash Savings” and then “Dividends Currently In Cash” on the right side of the cashflow sankey chart. It does this YoY. Maybe I’m missing something, but this seems like a bug?

    22 July 2023