I'm fairly set on investing into Vanguard S&P500. I am UK based and use Trading212 for this.
I have the ability to invest £500 a month moving forwards. For now, I have selected ACC not DIST, as the dividends I will receive are pennies.
My concept is, that by retirement age, I would like to be able to have a degree of income from the dividends, which hopefully won't be so negligible at that time.
I know that for long term building, ACC generally works better as it auto reinvests the dividends. When I do reach a time in life, decades from now, where I want to realise some of the potential gain and start receiving dividends, how would that work?
Do I need to sell, face the CGT then just rebuy the fund under DIST? Would this not likely be a large tax hit?
What would you say is worth looking at ? Long term goal is to stack £500 into it for approx 40 years, then once I'm retired, use the dividends towards living comfortably. Should I stop putting into ACC and go for DIST right away or?