Last month’s Asset Allocation Survey special question asked AAII members what they do with their dividend and interest income. Almost three out of five respondents (59%) said they either fully or partially reinvest the income. Some respondents said they set aside some of the cash for withdrawals, while reinvesting the remainder. About 23% use the dividend and interest income for living expenses and other expenditures.
Here is a sampling of the responses:
- “After providing for my cash needs in retirement, I reinvest.”
- “Reinvest manually so I can choose the stocks that are fairly valued.”
- “Most are reinvested in whatever makes sense at the time—usually not the dividend payer.”
- “Goes into my RMD (required minimum distribution) account for regular monthly payouts.”
- “Spend in my taxable account as part of my retirement income and reinvest in the tax-protected accounts.”
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