Ask Doug

Are DRIPs Good Vehicles for Retirement Investing?

Q. Is DRIP investing right for me if I want to add to my retirement savings?

RetirementA. DRIPs generally aren't great for retirement investing, so you should continue to max out all your retirement plans. But even if you do reach the annual limits in your retirement plans, you should still make some additional contributions in your taxable investment accounts, such as DRIPs or a regular brokerage account, if you ever want to reach the highest goals.

For more on DRIPs and how they work, read DRIP Central's Guide to DRIP Investing. That ought to bring you up to speed.