Reinvesting vs. Taking Dividend Cash

In this episode, Paul Durso and Kyle Morgan discuss whether investors should reinvest dividends or take them as cash, especially as they approach retirement. They strongly favor reinvesting dividends due to the power of compounding, which consistently results in higher returns and share accumulation over time. They caution that taking dividends as cash and attempting to time the market can be risky, inefficient, and hard to manage without advanced tools. For retirees needing income, they recommend splitting accounts—one for reinvestment and one for cash flow—to optimize both growth and income. The overall advice emphasizes understanding individual income needs and choosing a strategy aligned with long-term goals.

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