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Investing/Strategies / Retirement Investing
|Subject: Re: IRA and Dow Investing||Date: 6/23/2000 9:17 AM|
|Author: BookmFool||Number: 22801 of 76237|
I am going to transfer an IRA from a managed mutual fund to a discount brokerage...
Congratulations for taking control of your financial future.
...and try Dow investing strategies.
Have you researched the FF approach thoroughly? Do you understand and agree with the principles behind it? There has been much discussion over the last few months regarding the validity of Dow investing, in regards to its in-sample data and out-of sample returns, as well as the data-mining claim. You may want to go over to the Dow Investing/Foolish Four message board and read the last 1000 posts or ask one of the posters there where to start to read the arguments.
I had been investing about $50 a month into my IRA. Will I still be able to invest that way or should I wait until December when I'm ready to renew and then invest? Do I still send the discount brokerage the money incrementaly or all at once when I'm ready to renew?
I believe what you've been doing is what's called dollar-cost-averaging. Due to broker fees, you would purchase shares in your stocks at one time. And as far as adding money to your brokerage account, it would depend on whether or not your account pays interest on a cash balance. So your money can be doing something while it's waiting 'til the rebalancing period.
The FF FAQ has all this information and more, so you'll have a better grasp of what this strategy entails. Here's a link to that:
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