Dividend ReInvestment Plans or DRIPs can be a convenient and cheap way of compounding growth in your investment portfolio. If you are not signed up in a DRIP, any dividend paying securities (i.e. stocks, mutual funds, REITs, etc.) that you own will deposit all dividend payments into the accounts those securities are attached or you will receive a check if there is no brokerage account.
A lot of people will use dividend paying securities to increase their income, especially during the retirement years, and is one of the better investment tools to do so. If you are in that situation great, continue to do so, but realize that a DRIP is a possibility and you can opt in and out of the plan at any time.
Now if you are looking to grow your portfolio and don’t need any of the dividends payed to you, a DRIP might be one of the best tools available to increase your annual earnings over time. Continue Reading…
With over 8,000 mutual funds to choose from, picking a few to put your money into can be a bit overwhelming. If you have a 401k, the human resource department dwindled the list down a bit, if your lucky. But which to choose?