Comments on: Investment Objective: Income or Growth? http://www.thesunsfinancialdiary.com/investing/investment-objective-income-or-growth/ Fri, 03 Feb 2012 17:42:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: donghttp://www.thesunsfinancialdiary.com/investing/investment-objective-income-or-growth/#comment-12037 dong Mon, 25 Jun 2007 17:18:40 +0000 http://www.thesunsfinancialdiary.com/investing/stock/investment-objective-income-or-growth/#comment-12037 MoneyNing, I don't know that much about DRIPS plans, but I was always under the impression even though the dividends are reinvested, they still counted as dividend payments and would still need to pay taxes on the dividends. If this is not the case, I'm curious to how the DRIP plans operate. MoneyNing, I don’t know that much about DRIPS plans, but I was always under the impression even though the dividends are reinvested, they still counted as dividend payments and would still need to pay taxes on the dividends. If this is not the case, I’m curious to how the DRIP plans operate.

]]> By: MoneyNinghttp://www.thesunsfinancialdiary.com/investing/investment-objective-income-or-growth/#comment-11966 MoneyNing Sun, 24 Jun 2007 23:49:43 +0000 http://www.thesunsfinancialdiary.com/investing/stock/investment-objective-income-or-growth/#comment-11966 It's great to see that you are generating a good chunk of change from your investments. At this point in your life, and especially with your taxable accounts, you should really sign up for DRIPs. I'm not sure whether or not you can do this with the ETFs, but you can definitely do this with your stocks like Bank of America.This way, your dividends aren't taxed until you take them out and you can also keep reinvesting into the company, softening the effects when the stock is not in favor by being able to buy more shares with your dividend when the price is lower. Again, a good example is Bank of America since those banks suck right now (my fiancee's portfolio has some too so I'm in the same boat). It’s great to see that you are generating a good chunk of change from your investments. At this point in your life, and especially with your taxable accounts, you should really sign up for DRIPs. I’m not sure whether or not you can do this with the ETFs, but you can definitely do this with your stocks like Bank of America.

This way, your dividends aren’t taxed until you take them out and you can also keep reinvesting into the company, softening the effects when the stock is not in favor by being able to buy more shares with your dividend when the price is lower. Again, a good example is Bank of America since those banks suck right now (my fiancee’s portfolio has some too so I’m in the same boat).

]]> By: Sunhttp://www.thesunsfinancialdiary.com/investing/investment-objective-income-or-growth/#comment-11889 Sun Sat, 23 Jun 2007 04:54:07 +0000 http://www.thesunsfinancialdiary.com/investing/stock/investment-objective-income-or-growth/#comment-11889 Curiosity: Actually, I don't need the dividend now. The investments in dividend paying stocks/ETFs are only a small portion of our total investments. However, I would like to see a much bigger part later that can generate a significant amount of income when we retire. Right now, we are still in the accumulation stage and all the dividend distributions are reinvested. We don't collect any distributions, except bank interests. By investing in dividend paying stocks/ETFs regularly, we hope to build a larger basis to product income later. Curiosity: Actually, I don’t need the dividend now. The investments in dividend paying stocks/ETFs are only a small portion of our total investments. However, I would like to see a much bigger part later that can generate a significant amount of income when we retire. Right now, we are still in the accumulation stage and all the dividend distributions are reinvested. We don’t collect any distributions, except bank interests. By investing in dividend paying stocks/ETFs regularly, we hope to build a larger basis to product income later.

]]> By: Curiosityhttp://www.thesunsfinancialdiary.com/investing/investment-objective-income-or-growth/#comment-11886 Curiosity Sat, 23 Jun 2007 03:56:59 +0000 http://www.thesunsfinancialdiary.com/investing/stock/investment-objective-income-or-growth/#comment-11886 Hi,Just curious: why do you have to focus on generating income when you are not retiring yet? Dividend paying stocks have gained much recognition recently for other various reasons. Usually they are solid reputable companies which will have a nicely appreciating stock price in the long run. But if you really want to have a portfolio that generates income, they probably are not the perfect places to do. Anyway, my biggest question is why you need dividend now? Hi,

Just curious: why do you have to focus on generating income when you are not retiring yet? Dividend paying stocks have gained much recognition recently for other various reasons. Usually they are solid reputable companies which will have a nicely appreciating stock price in the long run. But if you really want to have a portfolio that generates income, they probably are not the perfect places to do. Anyway, my biggest question is why you need dividend now?

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