average

Investing

Investing for Retirement: Value Averaging

Value averaging is a combination of two things: dollar cost averaging, and portfolio rebalancing. Combining dollar cost averaging and portfolio rebalancing: (1) you buy more assets when prices are low and fewer when prices are high, and (2) you allocate more money to stocks when equity prices are low and less to stocks when equity prices are high. Therefore, value averaging permits higher returns than dollar cost averaging alone. Continue reading Investing for Retirement: Value Averaging

Mike Connelly
Investing

Investing for Retirement: Time

Time is transformational. The longer the time that you hold your investments, the closer your portfolio’s actual returns will approximate their expected average. If your investment time is short, then higher return investments may be too risky due to variation in your actual returns. But, if your investment time is long-term, then you can consider higher-return, riskier investments because the variation in your actual returns will be closer to the expected average. Continue reading Investing for Retirement: Time

Mike Connelly