http://www.theamateurfinancier.com/blog/negative-dollar-cost-averaging/ Thoughts on Money, Investing and Life Wed, 08 Feb 2012 18:41:13 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://www.theamateurfinancier.com/blog/negative-dollar-cost-averaging/#comment-1517 Roger Fri, 14 May 2010 13:23:49 +0000 http://www.theamateurfinancier.com/blog/?p=1423#comment-1517 @Hank: Very true; in the grand scheme of things, attempting to avoid negative dollar cost averaging as a result of the normal, fairly minor price fluctuations when you're selling will have little impact on the final amount of money you are able to withdraw. Much more important is setting up a reasonable withdraw rate and strategy to ensure (as much as possible) that your money survives longer than you. Still, any technique that can add even a little bit of money (and therefore time) to your retirement pot should be considered. @Hank: Very true; in the grand scheme of things, attempting to avoid negative dollar cost averaging as a result of the normal, fairly minor price fluctuations when you’re selling will have little impact on the final amount of money you are able to withdraw. Much more important is setting up a reasonable withdraw rate and strategy to ensure (as much as possible) that your money survives longer than you. Still, any technique that can add even a little bit of money (and therefore time) to your retirement pot should be considered.

]]> http://www.theamateurfinancier.com/blog/negative-dollar-cost-averaging/#comment-1287 Hank Fri, 09 Apr 2010 13:30:25 +0000 http://www.theamateurfinancier.com/blog/?p=1423#comment-1287 You are splitting hairs here. You praise dollar cost averaging when it is helping you buy shares at a lower cost basis but also knocking it when it does you more shares when selling. Negative dollar cost averaging will average itself out going both ways, when you buy and when you sell. You will have to sell more shares each month like you said in a rising market. Retirees should be more focused on withdrawing their nest egg at a constant percentage such as 3% to 4% in order not to outlive their money. .-= Hank´s last blog ..<a href="http://feedproxy.google.com/~r/ownthedollar/~3/2YRaiWK3f3E/" rel="nofollow">Do Not Watch Your Bankroll Or The Stock Market Either</a> =-. You are splitting hairs here. You praise dollar cost averaging when it is helping you buy shares at a lower cost basis but also knocking it when it does you more shares when selling. Negative dollar cost averaging will average itself out going both ways, when you buy and when you sell. You will have to sell more shares each month like you said in a rising market. Retirees should be more focused on withdrawing their nest egg at a constant percentage such as 3% to 4% in order not to outlive their money.
.-= Hank´s last blog ..Do Not Watch Your Bankroll Or The Stock Market Either =-.

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