What to do with Index fund gains?

THE THRIFT SAVINGS PLAN ALLOCATION GUIDE Forums Message Board What to do with Index fund gains?

This topic contains 4 replies, has 2 voices, and was last updated by  DrWx 5 years, 2 months ago.

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  • #10713

    Tracy

    Hi Paul,

    Just curious what you do with the gains you get from the ETF investments? Do you reinvest them in the same ETF or take them and invest in something else?

    Thank you,
    Tracy

    #10730

    TS Paul
    Keymaster

    Hi Tracy

    Typically I will just reinvest dividends in the same ETF if I feel that it is still the right investment for the phase of the business cycle at that time.

    Occasionally an individual stock might be more attractive to me at that particular moment and I’ll sweep all my available cash into that, but that’s pretty rare. The vast majority of my investments are in index funds.

    Thanks for the question.

    Best, Paul

    The TSP Allocation Guide www.TSPallocation.com

    #10914

    DrWx

    If you do not mind me asking, TS Paul, which company do you normally use to trade ETFs? I am getting a little overwhelmed at all the options and just trying to find one that does not cost much given I know the ETFs I’d like to trade.

    #10944

    TS Paul
    Keymaster

    I almost exclusively use Vanguard because of their very low fees (although a few other companies have finally started to come down to match Vanguard).

    The only exception is when there is a sector which I am interested in for which Vanguard does not have a fund. Right now, for example, I have some money in WMCR which tracks the Wilshire Micro Cap index.

    The TSP Allocation Guide www.TSPallocation.com

    #10971

    DrWx

    Thanks for your suggestion. 🙂

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