Message Font: Serif | Sans-Serif
No. of Recommendations: 1
On Wed, 28 May 97 02:11:00 -0600, MontanaFool wrote:

On Tue, 27 May 97 12:47:15 -0600, TMFTaxes wrote:

<<On Fri, 23 May 97 17:12:24 -0600, ORWAHOO wrote:


I plan on investing over a period of time (dollar cost averaging). I'll immediately put 20% into BTD stocks and perhaps short 10-20%. Then, every month or two, I'll buy a block of stock worth about $7,000. Over a 12-24 month period, I plan on eventually fully investing him in stocks.


TMF Taxes,

It may not be a tax question but why would anyone want to do this in the first place instead of immediately becomming fulling invested in stocks with all available funds. For me, 'dollar cost averaging' is something one does with future income over many years. What do I fail to understand here? Thanks.

Fooling in the Flathead

Tom Kuffel,


Good point. As another poster pointed out, unless these shares are to be purchased through a DRIP plan, the commissions would be greater when buying over a period of time rather than being fully invested. And you are right...dollar cost averaging is something usually done with future income.

I suppose that there could be a wonderful reason to dollar cost rather than immediately become fully invested, but I can't think of what it would be right now. Perhaps the original poster could provide some insight as to the reasoning.

TMF Taxes
Roy Lewis
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.