Hello all,
After a successful first thread here that informed me with many things to get to my goal of FI, I have opened up my Vanguard account! Very excited needless to say. I have purchased VTSAX and have chosen to have my dividends and capital gains reinvested. Just three days later a dividend payment showed up in my settlement fund. $4.93...woohoo!
So onto my (noob) question. The $4.93 has been sitting in my settlement fund for two days now and I was sort of expecting it to be transferred back into my brokerage account. In my current scenario, do the dividends stay in this settlement fund until the balance is high enough to purchase another share of VTSAX? Or does it get reinvested at a certain time period after it's been distributed to me?
Thanks!