Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Old 08-12-2011, 07:37 AM   #21
Recycles dryer sheets
Join Date: Jun 2011
Location: SW Florida
Posts: 65
Well, I did it and slept just fine.

Discovered Vanguard is open till 8 pm, so gave them a call and chatted a bit, then opened my account on line. Very simple, very straightforward. Will take till Tuesday till my funds are transferred from my bank, so not really an investor quite yet.

48% on Total Bond
26% Total Stock
13% International Stock
13% Small Cap

Also cash into the Money market fund so I can invest in my "Allegria" stock of choice as soon as the money is available.

Phase I is complete, thanks to many of you! Now, on to Phase II, how much and how often for the DCAing portion of this investment. I will, as suggested, get these amounts invested automatically at intervals.

More reading to do before I can go hit the couch as some here have suggested!

Thanks everyone and if you have any suggestions on DCAing or can pinpoint good posts or articles about it that would be nice, too!


Queenie is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 08-12-2011, 08:00 AM   #22
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 13,201
For your DCA, you might consider an approach called value averaging rather than DCA. It works like this, let say you want to invest $12000, a $1000 a month for 12 months. The first month you would invest $1000. If at the end of the month the $1000 was $950 as a result of market movements, you would invest $1050 (bringing your total balance to $2000). If at the end of the next month the balance was $2075, you would invest $925 (bringing your total balance to $3000). So on an so forth until the $12000 is fully invested.

What this approach does is invest more when the market is relatively lower and invest less when the market is relatively high (buy low). You have to fudge it a bit here and there but I used that approach to save for my kids education and was quite pleased with the result.

It is just a slightly better version of DCA, but does require a smidgen of additional work. Some folks would rather keep it simple and DCA a fixed amount each month. Both work fine, the important thing is that you are investing in your future.

pb4uski is offline   Reply With Quote
Old 08-12-2011, 08:09 AM   #23
Dryer sheet aficionado
Join Date: Jul 2011
Location: Reading, MA
Posts: 37
I'm a bit confused about Dollar Cost Averaging (DCA) in this situation. You're retired, so are you really planning to add new money to your VG investments each month? If so, then I assume the new money will come from your pension?

Regardless, the goal of new money coming into your VG account should be to maintain your asset allocation (AA). That means when stock prices are low, ALL of that month's new $$ goes to buy more stock. And when stock prices are high, all of the new $$ goes to buy more BONDS. This is especially true when the new $$ is a small fraction of the total already invested.

Anyhow, I think my point was: this is a variation (an improvement) on classic DCA: you buy stocks when their value is low, but you don't buy any stocks when their value is high...
TheWizard is offline   Reply With Quote
Old 08-12-2011, 03:32 PM   #24
Recycles dryer sheets
Join Date: Jun 2011
Location: SW Florida
Posts: 65
Thanks pb4uski! I will think about that approach while figuring out how much how often as a basis. That could work very well, but as usual I always need time to digest new ideas. DCAing with value added? Does it have a proper name?

Thank you too, Wizard, of course the idea is to keep the AA more or less stable to the original AA, so may have to favour one fund over another according to market flucuations.

Thanks again,

Queenie is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Stock Options? Dr.Crusher FIRE and Money 16 01-14-2012 03:12 PM
Question re: best way to invest "extra cash" Lisa99 FIRE and Money 21 08-10-2011 02:25 PM
Technology Application and Government run amok Telly Other topics 3 07-28-2011 04:34 PM
How to Invest my Mom's Money for Her Home Health Care Aide Costs? nico08 FIRE and Money 9 07-15-2011 02:51 PM
In the long run young investors will be rich. clifp FIRE and Money 35 06-28-2011 08:09 PM


All times are GMT -6. The time now is 01:23 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.