<prompt> Human: I have a Vanguard Roth IRA and I was wondering if it would be smarter to transfer my dividends and capital gains to my settlement fund then reinvest that money into other stocks or should I just let them reinvest themselves. Im pretty activate on following the market and I also dont know how the reinvesting myself would affect taxes. Thanks for any help you have.Edit: Im thinking of using the dividends plus the money I put in monthly to help diversify my portfolio.  <response>: I have a Vanguard Roth IRA and I was wondering if it would be smarter to transfer my dividends and capital gains to my settlement fund then reinvest that money into other stocks or should I just let them reinvest themselves. Since you could always sell some of whatever you have thats generating dividends in order to buy something else, these are equivalent. Except the settlement fund will not be invested for however long it takes you to buy it into something else, so is probably just worse. Im pretty activate on following the market and I also dont know how the reinvesting myself would affect taxes. You do not pay taxes on earnings or dividends in a Roth IRA. Thats the point of a Roth IRA. 