facebookWhy is it advisable to reinvest dividends from stocks or interests earned from savings than to withdraw them to use? Dont we invest to earn to fund our lifestyle? - Seedly
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Anonymous

22 Nov 2019

General Investing

Why is it advisable to reinvest dividends from stocks or interests earned from savings than to withdraw them to use? Dont we invest to earn to fund our lifestyle?

8

      Discussion (8)

      What are your thoughts?

      Hariz Arthur Maloy

      Hariz Arthur Maloy

      08 Jun 2019

      Level 15·Independent Financial Advisor at Promiseland Independent

      You can invest for growth or for income. If you're investing for growth, you're looking for compounded return. If you're investing for income, you're looking at receiving dividends.

      When you're young and your capital is a little low, you need to compound it. When you're a little older, you can start choosing to receive and spend your dividends to achieve financial independence.

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          Eric Ong

          Eric Ong

          22 Nov 2019

          Level 8·Project Analyst at 8Bit Global

          We love passive income to fund our lifestyle. Hence, I would ask myself if I have enough passive income to fund my lifestyle. If I have yet to reach that, I would reinvest and continue to build up my portfolio, and have a larger passive income moving forward. Ultimately, to reach Passive Income larger than Lifestyle Expense

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              Hi!

              There are basically 2 objectives that you can invest for: growth and income.

              If you are inve...

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