Search / 54 posts tagged cost averaging

The Get Rich Slowly Method Even with the worst timing, dollar cost averaging over a long period of time turns you into a winner. ¶ Posted 29 August 2008 † Wilfrid Baptiste § Personal Finance ‡ Comments (0) ° Tagged: 401k, dollar cost averaging, index funds, Investing, Mutual Funds, Stock Market

This article originally appeared on The DIV-NET (July 27, 2008). I adhere to the concept of dollar cost averaging by investing in my portfolio every month. The theory is that if you invest the same amount into a stock each month, then you reduce risk by spreading your investment out over time.

If you’ve ever had a 401(k) or just about any kind of retirement plan, you’ve probably heard the popular advice that you should “buy and hold.” Never mind if the market is tanking and your portfolio is bleeding money like IndyMac. (...)

At the time of this writing, Vanguard’s S&P 500 Index Fund (VFINX) is down 14.04% year-to-date (not including dividends). Where would you be had you dollar-cost averaged into VFINX during the year? To arrive at that answer I assumed a few things: 1. Invested $500 on the 1st and 15th of each month.

Using Automated Investment Strategies To Invest Wisely If you are a novice investor and you can not decide when it is the right time to buy or cell a certain stock, talk to your broker about automated investment strategies like DCA and DVA ¶ Posted 18 July 2008 † Jim Pretin § Finance ‡ Comments

Using Automated Investment Strategies To Invest Wisely Posted by Categories: Finance Ideally, investors try to buy a stock when the price has reached a support level (a level at which the price is as low as it will go) and sell the stock when it hits a resistance level (a level at which the price is as high as it will go).

In the past few weeks, I have received several inquiries as to how a retiree, or one who doesn’t have a steady stream of new money to engage in dollar-cost averaging, could invest in today’s market environment. The conversation frequently turned to high-dividend-paying stocks.

Today, we talk about Dollar Cost Averaging but What is It? Instead of investing assets in a lump sum, the investor works his way into a position by slowly buying smaller amounts over a longer period of time. This spreads the cost basis out over several years, providing insulation against changes in market price.

Make It Automatic This is the best piece of advice that I feel I can give. Make it automatic. Choose what you want to invest in and then automatically contribute the same amount to it every month. Have it set up to automatically come out of your checking account the SAME DAY you get paid.

How To Take Advantage Of The Credit Crunch No comment - Post a comment The credit crunch is starting to bite, more and more people are of the opinion that a recession is imminent. Each week we hear another bad news story from the business sector.