switching from "reinvest" to "receive" on fund dividends

[tamaplanian]

Hello all
My first post here
I have been investing via Monex in a variety of mutual funds.

For all of them I have selected "reinvest" for dividends as the priority was to grow the funds as efficiently as possible.

Now getting to my 50's at some point I would rather receive dividends rather than reinvest so i can create a passive income.
Does anyone know if its possible to change the how dividends are treated for an existing mutual fund investment? Can i switch from "reinvest" to "receive"?
Or would i need to cash out (triggering a tax event) start a new investment then select "receive" on the new investment.
Grateful for any advice!

[zeroshiki]

I'm not sure about Monex but on Rakuten you basically just need to click on the 再投資型 and it will take you to a screen to change it to 受取型

I assume Monex has something similar. I don't know if it sells the MF and rebuys it at a different dividend strategy but I don't think so.

===

EDIT: Sorry, I should have done this earlier. On the Monex site it says its impossible
https://faq.monex.co.jp/faq/show/170?ca ... in=default

購入時にご選択いただいた分配金受取方法は、購入後、変更することはできません。

Thats odd

[fools_gold]

If you can't change how dividends are handled, I'd just leave things as they are. Just cash out a small amount as you need it. Capital gains are best deferred in order to grow your investments.

By the way, what kind of funds are we talking about? Most index funds like eMaxisSlim don't pay out a dividend anyway. It's just accumulated within the fund.

[tamaplanian]

hi thanks for the replies

@zeroshiki, yep when i saw your first post i checked that on Monex and unfortunately it seems like they dont offer that option....

@fools_gold
Indeed some of my funds do pay out distributions

米国バイオ＆テクノロジー株オープン
三井住友・バンガード海外株式ファンド

Not sure why all funds in Japan don't pay a distribution - all my equity and bond Vanguard Index funds in Australia do....

[RetireJapan]

Not sure why all funds in Japan don't pay a distribution - all my equity and bond Vanguard Index funds in Australia do....

Probably depends on local tax laws: many countries don't allow for dividends to be reinvested tax free (the US, for example) whereas Japan does. Reinvesting dividends internally and not paying tax on them is much better for long-term growth.