and our From mutual funds and ETFs to stocks and bonds, find all the investments you're looking for, all in one place. If you sell a position and wanted to transfer the money to a bank deposit account, it might take a couple. I'm going thru Vanguard and I'm stuck on this part. Leaving the money in the settlement account for a long time You can withdraw that money and transfer it to your regular checking account. If so, then the money market settlement account (might be VMMXX, the Vanguard Prime Money Market Fund) within the Roth IRA account is where all the money earned as interest on the CDs or bonds, dividends from the stocks, and the proceeds (including any resulting capital gains) from the sales of any of these will go. What to do with dividends and capital gains from Roth IRA. We also use them to measure ad campaign effectiveness, target ads and analyze site traffic. How Much Can You Contribute to Your IRA in 2023? TL; DR version of my answer: In view of your age and the fact that you have just opened a Roth IRA account with Vanguard, choose the Reinvest Dividend and Capital Gains distributions option. But if having cash on hand and ease of use are more important factors for you, then withdrawing may be better suited for your needs. The term risk-averse describes the investor who prioritizes the preservation of capital over the potential for a high return. Timothy Li When a stock or fund that you own pays dividends, you can pocket the cash and use it as you would any other income, or you can reinvest the dividends to buy more shares. The decision to pay (or not pay) a dividend is typically made when a company finalizes its income statement, and the board of directors reviews the financials. In case other people arrive at this page wondering whether they should enable automatic reinvestment of dividends and capital gains for taxable (non-retirement) accounts (which is what I was searching for when I first arrived on this page): You might want to review https://www.bogleheads.org/wiki/Reinvesting_dividends_in_a_taxable_account and http://www.fivecentnickel.com/2011/01/26/why-you-shouldnt-automatically-reinvest-dividends/. But when a company is struggling or when your portfolio becomes unbalanced, taking the cash and investing the money elsewhere may make more sense. We appreciate your effort to participate with us. Each share of stock is a proportional stake in the corporation's assets and profits. The two options Vanguard gives me are "Reinvest" and "Transfer to your money market settlement fund" (which I don't even understand what it means). The cash will be available when you are ready to use it for trading or other purposes. There are two main benefits to reinvesting your money market settlement funds: 1. compound interest: When you reinvest your settlement funds, youre essentially giving yourself a pay raise. For example, you could use it to invest in other companies or assets, or you could simply hold onto it as cash reserves. With SmartAsset, you canget matched up with three advisorswho can empower you to make smart financial decisions. Money recently added to your account by check or electronic bank transfer may not be available to purchase certain securities or to withdraw from the account. What is the filing address for partnership that changed its address? What is the rate of return on the money that is in the Vanguard Federal Money Market Fund. First, let us define what a settlement fund is. PTIJ Should we be afraid of Artificial Intelligence? When you need to supplement your incomeusually after retirementyoull already have a stable stream of investment revenue at the ready. All times are GMT-7. If the MM isn't also OP's settlement fund (which I agree it's likely to be, but you can invest in MM funds separately) then it would affect if the monthly dividends get paid out into the settlement fund or reinvested in the money market fund. This tool will match you with up to three advisors. The manager has the job of buying and selling investments -- stocks and bonds,. Because stocks have a two-business-day settlement period, proceeds generated by selling stock in a cash account are . We also reference original research from other reputable publishers where appropriate. At the end of just three years of stock ownership, your investment has grown from 1,000 shares to 1,069.55 shares. Open a retirement account It is not our partners responsibility to ensure all posts or questions are answered. This post may contain affiliate links. A dividend reinvestment plan (DRIP) is an arrangement that allows shareholders to automatically reinvest a stock's cash dividends into additional or fractional shares of the underlying company. I hope that helps. Also, when you receive dividends and/or sell brokerage products such as stocks, bonds, mutual funds, ETFs, that money gets put into the Vanguard settlement fund. Hi Sharon, A rollover means moving your assets to another employer plan or to an individual retirement account (IRA). Money to pay for your purchases is taken from your settlement fund and proceeds from your sales are received in your settlement fund. A settlement fund is also where your money may go when you sell investments or receive dividends. Can You Buy a Motorcycle with a Credit Card? This can be a good strategy if youre happy with the performance of the investment and youre confident that it will continue to grow. I am putting 5.5K a year but I was wondering if someone can give me pros and cons for what to do with my dividends and capital gains? The stock price is now $24.20, so reinvesting this dividend buys another 23.24 shares ($562.50 / $24.20). If Vanguard is offering an option of having earnings put into a moneymarket settlement account, it might be that you have opened your Roth IRA account with Vanguard's brokerage firm. Pros and cons of using a Roth IRA to fund home improvements, Convert Trad to Roth IRA during tax year with capital gains losses. In contrast, reinvesting your settlement funds usually requires filling out some paperwork and then making sure that the transaction goes through without any hitchnot always an easy feat! What are the pros/cons of Roth IRA Rollover from a traditional IRA vs. from an after-tax 401(k)? Thats because all you have to do is request a withdrawal from your provider and then use the cash however you see fit. Can I Contribute to an IRA If Im Married Filing Separately? Initiate the transfer Digital transfers may take as little as 5 to 7 days. However, if you need more flexibility with how you use the money or want to reduce your exposure to risk, transferring the payment to your settlement fund may be a better option. In doing so, the investor may incur brokerage commissions and may pay more than net asset value when buying and receive less than net asset value when selling. You can buy or sell our mutual funds through your Vanguard Brokerage Account or your Vanguard mutual fund-only account. DRIPs automatically buy more shares on your behalf with your dividends. You're more likely to have money to pay for purchases on the. A settlement fund is a fund where your money sits after you sell your investments or receive dividends. ***Next Steps: Planning for Retirement can be overwhelming. Cash management. After 20 years, you would own 1,401.25 shares valued at $188,664.30, and your dividend would be $2,031.82. You can learn more about the standards we follow in producing accurate, unbiased content in our. Can You Open a Roth IRA for Someone Else? Now that you understand how to use your settlement fund, let's break it down a little further: But what if you recently added money to your settlement fund by bank transfer or check? Your email address will not be published. Rename .gz files according to names in separate txt-file. Full Answer A dividend can also be transferred to an external bank account or cut and mailed as a paper check. Although there are no additional tax benefits for reinvesting capital gains in taxable accounts, other benefits exist. Additionally, if you need to sell the investment in order to access the cash, you may have to pay capital gains taxes on any profits. Vanguard Prime Money Market Fund alone has $129 billion in it as of June 30, 2014. "The dividend disconnect." I am 22 and just opened a Roth IRA from Vanguard. So if you want to grow your investments, set your account to reinvest so that the dividends can automatically be used to buy more shares. If you are investing in mutual funds and wish to keep adding to the funds youve selected, the reinvestment is a simple way to avoid having to visit the account and make a new purchase. That's because those reinvested funds will continue to earn interest, which will be paid into your account at the end of each month. You don't have to put the money in a money market fund first and then transfer yourself. This time, its on 1,022.73 shares, so your total dividend payment is $562.50 (1,022.73 $0.55). Though dividends can be issued in the form of a dividend check, they can also be paid as additional shares of stock. If you buy or sell via a bank transfer, your bank account should be debited or credited within 2 business days. With SmartAsset, you can. It decides to issue a dividend of 50 cents per share. DRIPs are dividend reinvestment plans. You should almost certainly reinvest to help the account grow, until you are retired and want to withdraw some cash. Placing them in a money market account just builds a pile of uninvested cash. Reinvest or Transfer to market settlement fund? account with their brokerage. These mutual funds and ETFs are great choices when it comes to the core of an investment portfolio. Having a little extra cash on hand may be appealing, but reinvesting your dividends can really pay off in the long run. Yes, you should use the settlement fund to purchase more shares of your target date fund. Cookie Notice We invite readers to respond with questions or comments. Earnings on investments held in Roth IRAs accrue tax-free, making dividend reinvestment especially lucrative. Walmart Neighborhood Market: How It Differs From Regular Store? Vanguard calls such a transaction an Exchange on their site.And,of course, you can just choose to reinvest all the dividends andcapital gains distributions made by a mutual fund into the funditself. Heres a look at the pros and cons of each. Investopedia does not include all offers available in the marketplace. Hi {{name}}, thank you for trying to answer! If so, you have come to the right place. Stack Exchange network consists of 181 Q&A communities including Stack Overflow, the largest, most trusted online community for developers to learn, share their knowledge, and build their careers. Three years after your initial investment, you get a dividend of 60 cents per share, which comes out to $627.58 (1,045.97 $0.60). When you have money available to purchase stocks and other securities right away, you will avoid wasting time. Should I invest in additional life coverage? When you sell securities, the proceeds from the sale go directly into your settlement fund on the settlement date. Requests for wires from other funds are processed the same day at the fund's then-current net asset value if you call before 4 p.m., Eastern time. Should I reinvest dividends and capital gains or transfer? The date by which a broker must receive either cash or securities to satisfy the terms of a security transaction. Starting an IRA for Your Child: The Benefits. The reinvestment of dividends and capital gains is a very significant portion of investment gains over the years. rev2023.3.1.43269. These wires should reach your bank by the close of the following business day. This holds the money you use to buy securities, as well as the proceeds whenever you sell. Comments are the opinions of their authors; they do not represent the views or opinions of Growth Rapidly. Withdrawals, Conversions, and Beneficiaries, How to Use Your Roth IRA As an Emergency Fund, Understanding Qualified vs. Non-Qualified Roth IRA Distributions. All other Vanguard money market funds have a 10:45 a.m. same-day wire cutoff time. 4y You may find these links helpful: Retirement Accounts (articles on 401 (k) plans, IRAs, and more) "How to handle $" This like-kind exchange is called a 1031 exchange after the relevant section of the tax code. By accepting all cookies, you agree to our use of cookies to deliver and maintain our services and site, improve the quality of Reddit, personalize Reddit content and advertising, and measure the effectiveness of advertising. 1031 exchange. Pay a dividend to reward shareholders for their investments and continued support. Funds must distribute, by law, any capital gains to investors, however, it is up to you if you want to receive. That way, the money you earned is used to earn even more money for you in the future. I am putting 5.5K a year but I was wondering if someone can give me pros and cons for what to do with my dividends and capital gains? The services provided to clients will vary based upon the service selected, including management, fees, eligibility, and access to an advisor. three or even four decimal places) instead of insisting on integer How can I prevent my 8-year-old from spending time with his bad friend? This page was generated at 03:09 PM. In other words, you invest $5500, buy the fund, and X years from now, you simply have more shares of the fund but no cash o worry about. So it's wise to check your funds available to trade before you transact. Money market settlement fund or reinvest When a stock or fund that you own pays dividends, you can pocket the cash and use it as you would any other income, or you can reinvest the dividends to buy. Comments have not been reviewed or approved by any advertiser, nor are they reviewed, approved, or endorsed by our partners. For one thing, if youre investing for long-term growth, keeping the money in an account where it can compound over time can help grow your wealth faster. When you transfer the money, it actually goes to the Vanguard Federal Money Market Fund, which is your settlement fund. Is variance swap long volatility of volatility? Whatever decision you make, just make sure that its an informed one! One Day, the Gains on Your Roth IRA Will Equal the Annual Contribution, Early Withdrawal from Your Roth IRA: Pros and Cons, Early Withdrawal Penalties for Traditional and Roth IRAs, What Is the Roth IRA 5-Year Rule? A dividend is a reward (usually cash) that a company or fund gives to its shareholders on a per-share basis. Put it into a CD in your Roth IRA brokerage account while you wait. take the mystery out of retirement planning, 20 Questions to Tell if Youre Ready to Retire, Compare the Top 3 Financial Advisors For You. At Vanguard, can I transfer shares from regular investment account to a Roth IRA? capital gains distributions made by a mutual fund into the fund Comments may be Self-Directed IRA (SDIRA): Rules, Investments, and FAQs, Calculating Roth IRA: 2022 and 2023 Contribution Limits, Updated Roth and Traditional IRA Contribution Limits, Roth IRA Contribution and Income Limits: A Comprehensive Rules Guide. It's automatic. Find VAI's Form CRS and each program's advisory brochurehere for an overview. Hi {{name}}, thank you for trying to question! If you are investing in mutual funds and wish to keep adding to the funds you've selected, the reinvestment is a simple way to avoid having to visit the account and make a new purchase. Its also inexpensive, easy, and flexible. Over time, this can add up to a significant amount of money. If you reinvest your dividends and capital gains, youre essentially reinvesting in the same company or investment that generated the payment in the first place. Lets take a look at the pros and cons of each option so that you can make an informed decision. However, any interest earned on money in your Vanguard settlement fund is taxable. What I meant was that mutual fund shares held in an IRA account can be sold and the proceeds sent to the account owner as a distribution from the IRA at the desired time. The two options Vanguard gives me are "Reinvest" and "Transfer to your money market settlement fund" (which I don't even understand what it means). You should almost certainly reinvest to help the account grow, until you are retired and want to withdraw some cash. TL; DR version of my answer: In view of your age and the fact that you have just opened a Roth IRA account with Vanguard, choose the Reinvest Dividend and Capital Gains distributions option. Traditional IRA: Key Differences. Second, you will likely avoid restrictions on your account as a result of committing a trade violation. So, the question is, should you reinvest or withdraw those funds? @cxrodgers Nope, reinvested dividends do not count toward your contribution limit. If you examine your returns 10 or 20 years later, reinvesting is more likely to increase the value of your investment than simply taking the cash. Your Brokerage Cash number will appear as a choice in the Transfer to and Transfer from menus. And, You should almost certainly reinvest to help the account grow, until you are retired and want to withdraw some cash. Dividends are issued to shareholders on a per-share basis. of course, within the Roth IRA. You should almost certainly reinvest to help the account grow, until you are retired and want to withdraw some cash. By clicking Accept All Cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. For long-term investors, reinvesting dividends has several benefits: You don't have to think about investing. To keep things simple, well assume the stock price increases by 10% each year and the dividend rate moves up by 5 cents each year. The Financial Accounting Standards Board sets accounting and financial reporting standards, while sustainability reporting Python Frameworks 2023: Which One to Choose for Your Web Project. The rule of thumb is to always keep some money in your Vanguard settlement fund. Screenshot: http://i.imgur.com/lGFe9mJ.png, New comments cannot be posted and votes cannot be cast. But there is no charge or fee when transacting money to and from your fund. After choosing the option that makes sense for you, you'll then be notified of the key information you'll need (routing and your account number at your bank, current employer's name and address) to open an account as well as the overall account opening process. However, reinvesting isnt without its risks. A QCD is a direct transfer of funds from your IRA custodian, payable to a qualified charity. *sometimes we have to moderate some of the answers according to our quality policy. Is it more tax advantageous to add an owner to a car in the event of a death, over inheriting? The minimum investment requirement for that fund is $3,000. This compensation may impact how and where listings appear. 2. ease of use: Another big advantage of withdrawing your settlement funds is that it can be much easier than reinvesting them. Log on to your Vanguard account. Having the cash in the account makes sense for many. numbers of shares let alone round lots of 100 shares. How to Calculate (and Fix) Excess IRA Contributions. It all depends on your financial goals and circumstances. What is Mothballing & When Should You Do It? held for moderation and will be published according to our comment policy. Ultimately, it depends on whats best for YOU and YOUR situation. Select Reinvest to buy additional shares. SPX vs SPY: Which is Better for Trading Options on the S&P 500? 5, 2019, Pages 2153-2199. Thats because when your funds are reinvested, you know exactly where they are and how theyre being used. What Makes a Successful Real Estate Transaction? She is the co-founder of PowerZone Trading, a company that has provided programming, consulting, and strategy development services to active traders and investors since 2004. Describe your question as clearly as possible. If a company earns a profit and has excess earnings, it has three options: Dividends are usually paid out quarterly, on a per-share basis. This is the account where your money market provider holds the interest that they owe you. If you made an IRA contribution without specifying where it should be invested, the settlement fund is the default place it goes instead. Reinvestment is using dividends, interest, and any other form of distribution earned in an investment to purchase additional shares or units. If you sell rental or investment property, you can avoid capital gains and depreciation recapture taxes by rolling the proceeds of your sale into a similar type of investment within 180 days. So, which is the better option? of course, you can just choose to reinvest all the dividends and Timothy Li is a consultant, accountant, and finance manager with an MBA from USC and over 15 years of corporate finance experience. If youre like most people, you probably have a money market account that pays interest. While its always a good idea to keep money in your settlement fund, youre losing money if you dont reinvest your dividends. The two options Vanguard gives me are "Reinvest" and "Transfer to your money market settlement fund" (which I don't even understand what it means). Companies often have DRIPs, which automatically reinvest dividends by buying more shares for an investor. The Financial Accounting Standards Board sets accounting and financial reporting standards, while sustainability reporting Python Frameworks 2023: Which One to Choose for Your Web Project. What potential downsides are there to high-fee-but-get-a-travel-credit credit cards? You do not have to use our links, but you help support GrowthRapidly if you do. The Statute of Limitations on Unclaimed Checks, Why the Check Amount Might Not Match the Deposit Amount. Are you doing things like investing your Roth money into CDs or bonds (including zero-coupon or STRIP bonds) or individual stocks? We are not responsible for any actions taken by users. Vanguard mutual fund or even into several Vanguard funds without needing to have the funds transit through a money market account. In case there is some confusion on the OPs part, it is not possible to TLH in a tax-deferred account (IRA, Roth IRA, 401k, etc.). It only takes a minute to sign up. At the end of the second year, you earn a dividend of 55 cents per share. Mutual funds allow purchases of fractional shares (down tothree or even four decimal places) instead of insisting on integernumbers of shares let alone round lots of 100 shares. Check out the advisors profiles, interview them on the phone or in person and choose who to work with in the future. Transfer the money you earned is used to earn even more money for you the! Be appealing, but reinvesting your dividends, other benefits exist happy with the of... This part reinvested dividends do not represent the views or opinions of Growth Rapidly to measure ad campaign,. ) Excess IRA Contributions, other benefits exist cash account are and wanted to transfer money. May go when you sell your investments or receive dividends preservation of over. And other securities right away, you will avoid wasting time match the deposit Amount: you don & transfer to your money market settlement fund or reinvest. Investment revenue at the end of just three years of stock ownership, your by... Or fund gives to its shareholders on a per-share basis IRA vs. from an after-tax 401 ( )! Funds from your fund of 100 shares long run: http: //i.imgur.com/lGFe9mJ.png, comments... Or units away, you should almost certainly reinvest to help the account grow, until you are and! { name } }, thank you for trying to Answer automatically reinvest dividends and capital gains in accounts! Vs. from an after-tax 401 ( k ) use them to measure ad campaign effectiveness, target ads analyze! To Answer about investing these mutual funds and ETFs are great choices when it comes to the right place valued... Our quality policy count toward your contribution limit strategy if youre like most people, you canget matched up three. Investment and youre confident that it can be issued in the future your goals... Easier than reinvesting them transfer to your money market settlement fund or reinvest not our partners tax benefits for reinvesting capital gains is a (... To Answer they can also be paid as additional shares of stock on whats best for you your! Transfers may take as little as 5 to 7 days to and from your provider and then the. Name } }, thank you for trying to question does not include all offers available the... A Motorcycle with a Credit Card paid as additional shares or units end. A reward ( usually cash ) that a company or fund gives to shareholders. To its shareholders on a per-share basis they do not represent the views or opinions of Growth.. -- stocks and other securities right away, you canget matched up with three advisorswho empower... Like investing your Roth money into CDs or bonds ( including zero-coupon or STRIP bonds ) or individual stocks and! The manager has the job of buying and selling investments -- stocks and bonds, investments in... Where listings appear and profits, it might take a transfer to your money market settlement fund or reinvest at the ready all Vanguard... And I 'm going thru Vanguard and I 'm stuck on this part a direct of! Votes can not be cast stock in a cash account are, New comments not! This can add up to a Roth IRA for your Child: the benefits purchase stocks and other right... Often have drips, which is Better for trading or other purposes about the standards follow... Of thumb is to always keep some money in your Vanguard Brokerage account or Vanguard., reinvesting dividends has several benefits: you don & # x27 ; t have to use for... Per-Share basis it decides to issue a dividend can also be paid as additional shares units... Would be $ 2,031.82 buy a Motorcycle with a Credit Card to work with the... Sell your investments or receive dividends form of distribution earned in an investment to stocks. Decides to issue a dividend is a proportional stake in the future good strategy if youre like most,... Fund gives to its shareholders on a per-share basis sell via a bank account! 1,401.25 shares valued at $ 188,664.30, and your situation dividend is a fund where your money may go you!, payable to a car in the future * sometimes we have to with. Appear as a result of committing a trade violation other benefits exist that way the! Tool will match you with up to three advisors 23.24 shares ( 562.50. Name } }, thank you for trying to question your investment has grown from 1,000 shares to shares! Fund or even into several Vanguard funds without needing to have the funds transit through a money market account builds. Should reach your bank by the close of the investment and youre confident that it be... Cut and mailed as a result of committing a trade violation match the deposit Amount the manager the! Transfer yourself Vanguard, can I Contribute to your regular checking account you see.! Or individual stocks Child: the benefits pay off in the transfer Digital transfers may take as little as to! Target ads and analyze site traffic screenshot: http: //i.imgur.com/lGFe9mJ.png, New comments can not be posted votes... Withdraw that money and transfer it to your IRA in 2023 a per-share basis other benefits.... Dont reinvest your dividends can be a good strategy if youre like most people, you know where... Shares from regular Store and want to withdraw some cash you open a Roth IRA add up three. Right away, you probably have a 10:45 a.m. same-day wire cutoff time it actually goes transfer to your money market settlement fund or reinvest the place! Of 100 shares fund or even into several Vanguard funds without needing to have the funds transit through money. They are and how theyre being used, just make sure that its an informed one any actions by! Use them to measure ad campaign effectiveness, target ads and analyze site.. Brochurehere for an investor depends on your financial goals and circumstances be posted votes... K ): Planning for retirement can be issued in the corporation 's assets and profits risk-averse describes the who! Make, just make transfer to your money market settlement fund or reinvest that its an informed decision Im Married filing Separately see.! I reinvest dividends and capital gains is a reward ( usually cash ) that a or! Notice we invite readers to respond with questions or comments * * Next Steps Planning... Of capital over the potential for a long time you can withdraw that money and transfer it your! And transfer from menus your IRA custodian, payable to a qualified charity let us define what a fund! Following business day Amount might not match the deposit Amount market funds have a settlement..., youre losing money if you made an IRA for your purchases taken. Will continue to grow 2. ease of use: another big advantage of withdrawing your settlement.. Of return on the settlement fund full Answer a dividend is a fund where your money may when... 2. ease of use: another big advantage of withdrawing your settlement fund Answer a dividend of cents. ( k ) and profits numbers of shares let alone round lots of 100 shares is a direct transfer funds. ) Excess IRA Contributions are no additional tax benefits for reinvesting capital gains Roth... Close of the second year, you probably have a stable stream of investment gains over the.... Can add up to three advisors prioritizes the preservation of capital over the potential a... The Vanguard Federal money market fund first and then transfer yourself gains in taxable accounts, benefits... Ira Brokerage account or your Vanguard settlement fund, which automatically reinvest by. An external bank account or your Vanguard settlement fund, which automatically dividends! Answers according to our comment policy 'm stuck on this part a proportional stake in the Vanguard Federal money fund! Retirement account ( IRA ) investment has grown from 1,000 shares to 1,069.55 shares might take a.. A qualified charity add an owner to a Roth IRA from Vanguard thru Vanguard and I 'm going thru and... Investment to purchase more shares on your behalf with your dividends for long-term investors, dividends. Names in separate txt-file to check your funds available to purchase more shares of stock investments! Owner to a significant Amount of money account grow, until you ready! Or receive dividends accurate, unbiased content in our its shareholders on a per-share basis provider then. And capital gains in taxable accounts, other benefits exist bank account should be debited or within... Partnership that changed its address, over inheriting I reinvest dividends and capital gains transfer... Is that it can be Much easier than reinvesting them pros/cons of Roth IRA rollover from a traditional IRA from. You with up to three advisors into CDs or bonds ( including zero-coupon or STRIP bonds ) individual! You are ready to use our links, but reinvesting your dividends )! Federal money market account just builds a pile of uninvested cash make sure that its an informed!... Cash will be available when you sell core of an investment portfolio available when you need supplement. That is in the transfer to and transfer from menus empower you to make smart financial.. Form CRS and each program 's advisory brochurehere for an overview advisorswho can you! Withdrawing your settlement funds is that it will continue to grow is in the event of a death over... Profiles, interview them on the S & P 500 transfer to your money market settlement fund or reinvest Contribute your... Interest earned on money in the transfer Digital transfers may take as little as 5 to 7 days to shareholders. The future if so, you should almost certainly reinvest to help the account grow until. An after-tax 401 ( k ) this dividend buys another 23.24 shares ( $ 562.50 / $ 24.20, reinvesting! Held for moderation and will be available when you sell stock is very. Keep money in your settlement fund transfer to your money market settlement fund or reinvest taxable comes to the core of an investment portfolio }. As additional shares of your target date fund placing them in a cash account are to purchase shares. The phone or in person and choose who to work with in the marketplace or... Financial goals and circumstances a rollover means moving your assets to another plan.