This mistake happens more often than you’d think. And this can make a HUGE difference over long periods of time.

What are dividends? Profitable companies often make cash payments, called dividends, to the people who own their stock. This usually happens every quarter. The amount is pretty small, (somewhere between 0.5% and 3% of the company’s stock price usually) but it adds up and compounds over time.

Usually by default, these dividends will sit in cash in your account. BUT, you can set it so they are automatically reinvested.

So what to do? Go check your investment accounts and make sure the box is checked for dividends to be reinvested. It takes less than a minute to do this. To prove that, Fidelity even has a video on their YouTube channel on how to do this and it is only 41 seconds long! So what are you waiting for?! Go check! One minute could make you $500,000 richer.

As always, reminding you to build wealth by following the two PFC rules: 1.) Live below your means and 2.) Invest early and often.‎

-Vivi & Shane

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By: Shane Sideris
Title: Don’t forget to reinvest dividends
Sourced From: www.personalfinanceclub.com/dont-forget-to-reinvest-dividends/
Published Date: Wed, 16 Oct 2024 02:31:09 +0000

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