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Do you always want to reinvest your mutual fund interest?
I own several mutual funds. Ever since buying them I have always had them set to reinvest the interest into the same mutual fund. Now with the market as high as it is, I am wondering if it might be better to just put the interest in my money market vs. auto reinvesting. Then wait for the market to go down to reinvest. Any advice? Thanks in advance.
1 Answer
- zman492Lv 72 years agoFavourite answer
<<<Now with the market as high as it is, I am wondering if it might be better to just put the interest in my money market vs. auto reinvesting. Then wait for the market to go down to reinvest.>>>
Basically you are thinking about trying to time your future market purchases
Trying to time purchases has been shown to be very difficult and most people are not very successful in their attempts to make more that way. Neither you nor I know if it would be advantageous for you to do it now.
You are not talking about a large percentage of total investment, so you will not be doing a lot of harm if you try it and are wrong. I would not recommend it, but if it give you more peace of mind it might be worth it.