Saturday, November 14, 2009

I'm so dumb!

So I’m really dumb.

I was reading an online investment guide about diversifying portfolios and the like and I read about mutual funds and stock’s that payout yields and dividends annually and it was then that I realized that my mutual funds pay out dividends…

This makes me wonder if all my retirement perspective calculations have been off. If I look at the dividends like interest on a savings account, then I’m fine… But I wonder if I should look at them that way, especially since I re-invest those dividends and buy shares with them…

I originally opened my account through ING direct in 2007 and in 2008 they rolled that over into a ShareBuilder account so I can’t look at my account history before October 2nd 2008 as it doesn’t exist anymore (so I’ve no idea how much $$$ I collected through dividends).

Since my accounts moved to ShareBuilder, I’ve received to date:

• $713.79 in dividends. (6.20% of the amount I personally invested $11,500.)

Which is a nice amount of “free” money to invest… but since my account is still in the red, this means I actually lost an additional 6.20% when we hit the recession. Ouch…

I don’t know if I’m okay with just shrugging my shoulders at the dividends and calculating them like interest (but that’s what they are… a thank you for my investment in “whatever companies” my mutual fund has in them).

But I’m kind of bummed that I lost an additional $713.79… especially when my account is soooo close to breaking even. It makes me feel like I won’t break even on my account until it’s worth $12,213.79

So, should I go back and amend all my retirement perspectives to account for a dividends reinvested (that I know of) section? Or just leave it be and just look at the money I’ve put in from my paycheck and compare it to the market value that it’s worth?


  1. Personally, I count mine as interest, even though I do like you do and reinvest mine. I think either way as acceptable as long as you are consistent.

  2. Dear Author !
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