Learning about Value Averaging
Anyone who is seriously considering Value Averaging should borrow, steal, or buy a copy of Value Averaging by Michael Edleson -- 2006 --
As I recall, Edleson calls for using a simple S&P500 index fund with 'adjustments' every 90 days. I 'goosed' the algorithm by using leveraged S&P500 funds like SSO and UPRO, and I may buy/sell adjustments every 15 days.
For me, performance as measured by Internal Rate of Return (IRR) has been excellent for over 12 years in my IRA -- it is currently at 28%. IRR is a convenient measure of performance, and Excel will compute it for you, but it does exaggerate positive returns.
Most of my retirement funds are in safe but low-yielding investments -- but a healthy portion is now following Value Averaging algorithms. I'm new to this forum, and I'm not sure how to send 'private' or 'directed' messages yet, but I'd be happy to swap notes with anyone who wants to have a serious discussion about VA or other investing algorithms. (dleeper47)
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