Vanguard - Reinvesting Dividends

bcfclee27
bcfclee27 Posts: 228 Forumite
Part of the Furniture 100 Posts Combo Breaker
in Savings & investments
In my GIA with Vanguard I'm trying to change settings so any dividends are reinvested automatically.

However the only options I have are....

- Leave as cash in my investments account
- Pay to my bank account.

Is there no option with Vanguard to automatically reinvest ?

Thanks

Comments

  • dunstonh
    dunstonh Posts: 119,157 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I had to do a section 104 capital gains tax calculation for someone that had reinvested dividends covering 47 transactions. Not a lot of fun. As you are in a GIA, section 104 will apply to you.

    You may find it easier to use the yield to buy a different fund or just stick to once a year rebalancing on the cash float.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • bcfclee27
    bcfclee27 Posts: 228 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    dunstonh wrote: »
    I had to do a section 104 capital gains tax calculation for someone that had reinvested dividends covering 47 transactions. Not a lot of fun. As you are in a GIA, section 104 will apply to you.

    You may find it easier to use the yield to buy a different fund or just stick to once a year rebalancing on the cash float.

    Oh right, what happens if it's put in an ISA as opposed to a GIA ?
  • AnotherJoe
    AnotherJoe Posts: 19,622 Forumite
    10,000 Posts Fifth Anniversary Name Dropper Photogenic
    bcfclee27 wrote: »
    Oh right, what happens if it's put in an ISA as opposed to a GIA ?

    No paperwork is needed :D
  • bcfclee27
    bcfclee27 Posts: 228 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    AnotherJoe wrote: »
    No paperwork is needed :D

    But how do I make sure any dividends are reinvested and accumulated rather than paid out to bank account or stored as cash ?
  • MallyGirl
    MallyGirl Posts: 7,147 Senior Ambassador
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    buy the acc rather than the inc version of the fund?
    I’m a Senior Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
    & Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
    All views are my own and not the official line of MoneySavingExpert.
  • bcfclee27
    bcfclee27 Posts: 228 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    MallyGirl wrote: »
    buy the acc rather than the inc version of the fund?

    Thanks mallygirl that's solved the mystery !!!
    I had chosen the Acc version hence why there wasn't the option...
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 349.8K Banking & Borrowing
  • 252.6K Reduce Debt & Boost Income
  • 453K Spending & Discounts
  • 242.8K Work, Benefits & Business
  • 619.5K Mortgages, Homes & Bills
  • 176.4K Life & Family
  • 255.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture