- 1). Select a transfer destination. Select a mutual fund, a checking or savings account, or a cash dispersal via a check from the mutual fund or stock management firm.
- 2). Establish security credentials. Before making any changes to your investment accounts, including changes to dividend dispersal, you will need to establish your identity with the investment company. This can often be done with a phone call or visit to an Internet site. You will create passwords and user names to access your accounts online or over the phone. Authorization may take several days, however, as the investment company will confirm your identity in a variety of ways. The company may send a letter to your address of record and ask you to confirm the authorization by phone from the home phone you designated when setting up the account. Online authorizations may require you to log in with a temporary user name and password provided by the company to ensure that you are the one logging in.
- 3). Link to the cash account. Add your selected destination account as a linked account to your investment account. This can generally be done online, by telephone or by written instructions through the mail. Again, this will take several days to complete, since the bank will verify account ownership and send confirmation notices to you. You may be asked to take action to confirm the addition of the account.
- 4). Call the firm managing your investment account or log in to the secure Internet connection to the firm's website. If you are calling, tell the customer service agent that you want to transfer dividends to your cash account. This can be done on a one-time or on a continuing basis. There are instructions on most investment firms' websites for setting up one-time or continuing dividend transfers. If you are unable to figure out the process, call technical support while you are at the computer. At this time you will designate whether you want dividends deposited to your cash account or sent to you by check.
- 5). Use the dividends. Once the dividends arrive in your account or in the mail, you have several options. Although spending the dividends is one choice, you could also save them, leave them in the mutual fund, invest them in a new account or reserve them to pay taxes.
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