UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: sriechers Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76398  
Subject: Dollar Cost Averaging in Reverse Date: 12/7/1999 8:35 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I'm a big believer in dollar cost averaging, and we have made a great start at building our retirement fund. In another ten or fifteen years, however, I'll have a problem:

If I withdraw from my savings at a constant rate, I'll be selling fewer shares when their price is high, and more when they are low-- in other words, I'll be the victim, not the beneficiary, of dollar cost averaging.

I've thought about this quite a bit, but haven't really come up with anything profound. I have a pretty good knowledge of statistics, so I could probably come up with some sort of analysis that would give me a signal when a fund had hit a high or a low, but that's really just another method of timing the market, which I don't consider very reliable.

Any ideas?

Thanks alot,

Sam
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Economic Implications of Cuba
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement