Message Font: Serif | Sans-Serif
No. of Recommendations: 0
It's not clear from your question whether you are asking about the (dis)advantages of using a DRIP inside vs. outside an IRA or the (dis)advantages of a DRIP vs. other investment choices within an IRA.

The only obvious advantage to using a DRIP inside (vs. outside) an IRA is that you don't have to keep track of the cost basis of each of the small reinvestments. I'm not aware of any disadvantages.

As to DRIP vs. other investments, that's a personal decision based on investment style, risk tolerance, etc.)

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.