Dollar cost averaging is a system whereby you invest a fixed amount in an asset at a regular interval. The intent is to buy more of that asset when its price is lower. This permits you to obtain a lower average price than if you bought a fixed quantity of that asset at each interval. Continue reading Investing for Retirement: Dollar Cost 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
I began writing this book after several family members asked me for my perspective about investing for retirement. I shared a number of links to dense financial books and online financial management sites. For some reason, they didn’t have the time or inclination to read several bookshelves of books on investing. Instead, they asked me to distill all that information into something more straightforward. This book addresses investing for the typical individual investor. The information herein reflects the financial and investment knowledge that I believe everyone should possess. Continue reading Investing for Retirement: Overview
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