Joe,I agree with the idea that it will be safer to split up the purchasesover time, rather than making them all at once.Having said that, it seems to me that there are 2 aspects of the timing of the purchases, that would affect safety.#1 is: how many months should elapse between the first and last purchase?#2 is: how many purchases per month?Let's take 36 months as your answer to #1, for the sake of discussion.Question #2 would then arise: is it just as safe to make only one purchase per month, as it would be to make one purchase per week, or even one per day?It seems to me that you might want to trickle the purchases, one per week,each about 1/156 of your (pertinent) money, for a total of 3 years.To explore/test how much the purchase-cycle-length affects smoothness of results, would require some historical data, and some number crunching. If you're not interested in doing that, maybe you would simply picka cycle length that 'felt safe' to you, whether it was once a day,twice a month, or whatever. If the rationale for not buying everything in one fell swoop is to raise your chance of more closely mimickingthe long term market results, then the chief reason for _not_ making tiny daily purchases would be increased costs of trading...which might or might not be a big factor, depending on your choice of brokerage and investment instrument (mutual fund, ETF, Berkshire A, or whatever)hirundo
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra