Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Dollar Cost Averaging - Anyone still buying?
Old 02-12-2009, 09:54 PM   #1
Recycles dryer sheets
Join Date: Sep 2007
Posts: 464
Dollar Cost Averaging - Anyone still buying?

Wonder if anybody still buying mutual funds using DCA?

Disappointed 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 02-12-2009, 10:16 PM   #2
Thinks s/he gets paid by the post
DblDoc's Avatar
Join Date: Aug 2007
Posts: 1,224
1) If you are asking do I have a lump sum of cash that I am slowly investing into the market - no.

2) If you are asking am I investing my paycheck every two weeks into the market the answer is yes. New dollars going into whatever assets have been knocked furthest from my AA plan.

The first is DCA, the second is periodic investing.

DblDoc is offline   Reply With Quote
Old 02-12-2009, 10:42 PM   #3
Join Date: May 2007
Posts: 12,869
Yes, still buying here. Both regular contributions and lump sums get invested in the market as soon as they hit our accounts. We received a very nice bonus in early January and it has already been put to work. I expect other large sums of money coming in at the end of this month and in early April and they will get invested too. Looking at my investment accounts, right now I have a miserly $511.41 in cash and cash equivalents.
46 years old, single, no kids. Exited the job market in 2010 (age 36). Have lived solely off my investments since 2015 (age 41). No pensions.
Current AA: real estate 64% / equities 10% / fixed income 16% / cash 10%
FIREd is offline   Reply With Quote
Old 02-13-2009, 12:37 AM   #4
Moderator Emeritus
laurence's Avatar
Join Date: Feb 2005
Location: San Diego
Posts: 5,253
No way man, I only buy when the market is flying high, that way I can pay top dollar for my funds...

This market is like, page 2 of the manual on why you DCA, you sound like it's evidence proving it wrong. In the book "The 4 Pillars of Investing" it outlines a graph that for a young dreamer DCAing into the market, this is the best thing that can happen to him or her.

I'm putting 2k into the market every month, wish I could do more.
laurence is offline   Reply With Quote
Old 02-13-2009, 04:25 AM   #5
Thinks s/he gets paid by the post
Tadpole's Avatar
Join Date: Jul 2004
Posts: 1,328
I don't get my match for the 2 week pay period if I don't DCA at least to the match (5%).

But I have come to believe the market should be timed if a bubble occurs. I reverse DCA-ed in 2007 out of equities into bonds/cash ending up with a 25% allocation left in equities. The DCA amounts were big chunks though. Now I am putting new money into equities to balance, to the extent possible, the 25% left in equities that was bought by DCA-ing at inflated prices.

DCA by payroll deduction is a joke when the market has two bubbles that burst when you are contributing in your 50's and 60's unless you grab and lock in profits or reduce losses by timing the bubbles.

But I do wonder if I were not working and contributing new money I would have the intestinal fortitude it would take to DCA or dump the "profits" I "saved" back into equities now that prices are low.

I don't think daily market timing is smart but I do think making moves at the right time is smart. It seems to me that DCA was meant to iron out volatility in price when that volatility was distributed around good prices. I think it cannot work when a macro structure like a bubble overlays normal market fluctuations if a time horizon is not very, very long.
Tadpole is offline   Reply With Quote
Old 02-13-2009, 04:39 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
clifp's Avatar
Join Date: Oct 2006
Posts: 7,607
I almost wish I was working so I could DCA into this market. But I am pretty much all in with equities (ok 15-20% bonds and cash)
clifp is offline   Reply With Quote
Old 02-13-2009, 05:31 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
target2019's Avatar
Join Date: Dec 2008
Location: Stuck in the mud somewhere in the NJ swamp
Posts: 7,536
Originally Posted by Disappointed View Post
Wonder if anybody still buying mutual funds using DCA?
Every week for me, every other week for her. Maxing both Roth funds too.
Everything's cheap now, can't resist.
Wouldn't it be great if you could find all the valleys and just invest there?
Best wishes.
target2019 is offline   Reply With Quote
Old 02-13-2009, 07:50 AM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
donheff's Avatar
Join Date: Feb 2006
Location: Washington, DC
Posts: 10,534
DW is still working part time and is still dumping the max into index funds. Probably one more year to go.
Every man is, or hopes to be, an Idler. -- Samuel Johnson
donheff is offline   Reply With Quote
Old 02-13-2009, 07:53 AM   #9
ziggy29's Avatar
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
Yeah, today is my pay day (usually on the 15th but that's on a Sunday), so another chunk of cash (14% of salary plus 5% in company match plus $416.66 into a Roth) is dutifully chasing the falling knife... usually these are the few days the market spikes up 300 points, only to tank again the day after I buy. Maybe I ought to keep it in cash for 3-4 days before investing it, hmm....
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)
ziggy29 is offline   Reply With Quote
Old 02-13-2009, 08:15 AM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
freebird5825's Avatar
Join Date: Feb 2008
Location: East Nowhere, 43N Latitude, NY
Posts: 9,030
Still DCA at $700/month rate into VWAHX. I am almost at a pre-set target to have enough TE dividends to cover my annual school/property taxes. Plan is to have VWAHX serve as an independent income generator for those taxes.
Once that goal is achieved (by June 09 maybe), I will redirect that DCA money to stock funds I already own, most likely VEURX or VTSMX.
Can't contribute to my Roth anymore - no earned income, unmarried.
"All our dreams can come true, if we have the courage to pursue them." - Walt Disney
freebird5825 is offline   Reply With Quote
Old 02-13-2009, 08:40 AM   #11
Moderator Emeritus
Rich_by_the_Bay's Avatar
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
Yeah - still maxing out my 401k, 403b, and 457 which are in stock index funds and some stable value funds. Odd feeling to max out and have the balance drop month to month.
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Old 02-13-2009, 10:48 AM   #12
Moderator Emeritus
W2R's Avatar
Join Date: Jan 2007
Location: New Orleans
Posts: 45,360
I suspended DCA'ing into VTSAX (Total stock mkt), VWIAX (Wellesley), and VfWIX (int'l) in my taxable account after rebalancing last October. I was getting close to my desired AA in September, so it was about time to stop anyway but with October's crash, my rebalance was over 7%. Right now my AA is still fairly close to my desired AA - - 42:58 instead of 45:55 is probably close enough for me though I have been musing and considering lately.

As for my TSP (401K), I still contribute $960 every two week pay period to it, which should result in contributing the max plus over-50 catchup to it by the time I retire. I moved most of my TSP balance and all of my TSP contributions from equity funds to "G-Fund" (government treasuries) back in December, 2007 since I was so close to retirement. I suppose I should say it was because of my astute financial prognostication, but it was mostly dumb luck coupled with revising my financial plan for ER.

I still haven't made my 2009 Roth IRA contribution but when I do, it will be in equities.
Happily retired since 2009, at age 61.
W2R is offline   Reply With Quote
Old 02-13-2009, 11:36 AM   #13
Moderator Emeritus
CuppaJoe's Avatar
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,873
Iíve been skittish about putting money into equities for 37 years; it always feels like jumping into hot acid. For a long time I had a rule to get lump sums in within a month or three. Now, Iím pushing myself to re-balance; the new rule is to move 1% of PF from Ginnie Maeís every other month or so depending on what the market and economy are doing.
CuppaJoe is offline   Reply With Quote
Old 02-13-2009, 11:37 AM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
Join Date: Aug 2006
Posts: 12,483
I think we are at the bottom of the market, DW asked if she should lower her 401K contribution. As the wife of an FA, I guess she just called the heard it here first!
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)

This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 02-13-2009, 11:52 AM   #15
Thinks s/he gets paid by the post
DangerMouse's Avatar
Join Date: Jan 2007
Location: Silicon Valley
Posts: 1,812
We are still making our monthly contributions to our Vanguard mutual funds. They were on auto pilot before the crash and we have not changed them. However, we are not making large additional lump sum contributions in an attempt to rebalance our portfolio.

I be a girl, he's a boy. Think I maybe FIRED since July 08. Mid 40s, no kidlets. Actually am totally clueless as to what is going on with DH.
DangerMouse is offline   Reply With Quote
Old 02-13-2009, 12:11 PM   #16
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2007
Posts: 7,746
Still making regular after tax investments, maxing 401k's and IRA's. I'm still in my 20's, so I regard this as a huge buying opportunity, and I hope the markets stay in the dumper for another 5-6 years and that DW and I remain employed. Well, I hope that I remain employed. DW remaining employed is almost cash-neutral all things considered.
FUEGO is offline   Reply With Quote
Old 02-13-2009, 02:26 PM   #17
Thinks s/he gets paid by the post
Bimmerbill's Avatar
Join Date: Jan 2006
Posts: 1,645
Still buying into my 401K, but had to reduce % due to other unexpected expenses. So, yeah, still DCAing.
Bimmerbill is offline   Reply With Quote
Old 02-13-2009, 02:39 PM   #18
Full time employment: Posting here.
ProspectiveBum's Avatar
Join Date: Sep 2006
Location: SoCal
Posts: 864
DW and I are still maxing out our 401k contributions, and have an additional monthly contribution to our taxable Vanguard account. Like FUEGO, I'm looking at this as a buying opportunity that could pave the way to ER for both of us in 12-15 years (I'm 36, DW is 40).
I can't complain, but sometimes I still do.
- Joe Walsh
ProspectiveBum is online now   Reply With Quote
Old 02-13-2009, 02:46 PM   #19
Full time employment: Posting here.
RetiredGypsy's Avatar
Join Date: Mar 2008
Posts: 979
I had a lump sum that I was investing in my Vanguard index funds over a period of time. Right up until last month. Now that the lump sum has been invested, I'll be contributing on a monthly basis instead.
I'm free and I like it!
RetiredGypsy is offline   Reply With Quote
Old 02-13-2009, 03:12 PM   #20
Recycles dryer sheets
ladypatriot's Avatar
Join Date: Jun 2008
Posts: 121
Originally Posted by Disappointed View Post
Wonder if anybody still buying mutual funds using DCA?

Yep. Every month. Stock funds, bond funds. We might start buying into a TIPS ETF.
ladypatriot 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
Systematic Purchase (Dollar Cost Averaging) Frequency? Dude FIRE and Money 10 04-28-2008 07:44 PM
Dollar cost averaging is... a lie? Sisyphus Young Dreamers 43 07-09-2007 04:15 PM
Lump Sum or Dollar Cost Averaging your Roth/IRA mickeyd FIRE and Money 3 11-23-2006 04:38 PM
Dollar cost average large amounts currently? Natalie FIRE and Money 2 07-16-2003 10:51 AM

» Quick Links

All times are GMT -6. The time now is 10:32 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2021, vBulletin Solutions, Inc.