urn2bfree
Full time employment: Posting here.
- Joined
- Feb 14, 2011
- Messages
- 852
I am still in the accumulation phase- (for about 8 more months) and am new to the VCA method and not sure I completely get it...
I have been putting money in every 3 months to be distributed according to keeping my asset allocation at appropriate levels. This is the first time that my portofolio is up so much that I am not sure that I am interpreting the VCA strategy correctly and am looking for a little guidance.
As I understand it--you pick a target return you expect to hit--for me maybe I set it too low..at 6% or 1.5% per quarter. If the value of my portfolio falls short, I put in enough to get it back to where it should be and then my usual quarterly input as well. BUT if it is up, I take out from what I would usually put in....well this quarter my portfolio is more than double ahead--that is it is up by the amount I would add 2 x over...that would suggest putting nothing in? Or taking some out?
I have been putting money in every 3 months to be distributed according to keeping my asset allocation at appropriate levels. This is the first time that my portofolio is up so much that I am not sure that I am interpreting the VCA strategy correctly and am looking for a little guidance.
As I understand it--you pick a target return you expect to hit--for me maybe I set it too low..at 6% or 1.5% per quarter. If the value of my portfolio falls short, I put in enough to get it back to where it should be and then my usual quarterly input as well. BUT if it is up, I take out from what I would usually put in....well this quarter my portfolio is more than double ahead--that is it is up by the amount I would add 2 x over...that would suggest putting nothing in? Or taking some out?