If I buy/sell stocks thru Sharebuilder, what happens to my dividends?
Question:
Answer:
Nothing wrong with Sharebuilder. The $4 that you're talking about is for the trades that you generate. If you have differant arrangements for your dividends, other than putting in your acct., the your going to have to pay taxes. So, just let it accumalate in the acct. and pay no taxes till you start drawing on it.
The only people who make money investing like you are considering is the company making the trades for you. They want you to move around your investments to get more fees. Is it $4 to buy and another $4 to sell? If you sell one and buy another in the same trade is it $4 or $8?
These things are rip offs. Find a good investment. When you buy one look at keeping it for at least six months. That will save you so much on trading fees you will come out way ahead.
Dividends are taxable income unless you own the shares in a tax-favored vehicle like an IRA.
In a regular brokerage account, it doesn't matter if you deposit the dividends in the account or have them paid directly to you. They are still taxable.
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