Does Reinvesting eliminate all your Hyperbits?
If I were to Reinvest, would I end up without any Hyperbits, or would they still remain?
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What is the downside to reinvesting dividends?
One of the disadvantages of dividend reinvestment is that it often happens automatically or with little thought given to the process. A dividend reinvestment plan will buy more shares without you needing to take any action. This will happen regardless of whether the stock price is high or low.What happens when you reinvest your dividends?
If you reinvest dividends, you can supercharge your long-term returns because of the power of compounding. Your dividends buy more shares, which increases your dividend the next time, which lets you buy even more shares, and so on.Is it better to reinvest dividends or keep them?
If you have a long investment timeline or don't need additional income, experts recommend reinvesting your dividends by acquiring more shares of stock. That way, the money you earned is used to earn even more money for you in the future.When should I stop reinvesting?
When you are 5-10 years from retirement, you should stop automatic dividend reinvestment. This is when you need to be moving from your accumulation asset allocation to your de-risked asset allocation. This is De-Risking your Portfolio Prior to Retirement.Dividend Investing: Pros and Cons of DRIPS (Dividend Reinvestment Plans)
Sources: Stack Exchange - This article follows the attribution requirements of Stack Exchange and is licensed under CC BY-SA 3.0.
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