Should I reinvest dividends and capital gains or transfer?

It all depends on the company you are investing in.

Ultimately, a company that is doing well and maintaining a stellar balance sheet with a terrific record should encourage you to reinvest your dividends. On the other hand, if the business is struggling to grow or pay off its debt, you should take the money and run and either put it into your savings or reinvest the funds in another stock.

Overall, reinvesting dividends over the long-term can increase your income when you are at or near your retirement and you begin withdrawing from your nest egg.

Take a look at your portfolio, determine your financial goals, and then decide if you want to keep the cash or reinvest.