Comments on: Dollar Cost Averaging vs. Value Averaging

By: The Writer’s Coin » Blog Archive » Value Averaging: Take the Blindfolds Off

Fri, 07 Nov 2008 13:38:58 +0000

[...] few weeks ago I stumbled onto a post over at Cash Money Life about value averaging—something I had never heard of. What is value [...]

By: Finance Fiesta - Blackjack Edition! | Master Your Card

Finance Fiesta - Blackjack Edition! | Master Your Card — Fri, 24 Oct 2008 05:35:02 +0000

[...] Money Life presents Dollar Cost Averaging vs. Value Averaging. A good breakdown of the respective pro’s and con’s of Dollar Cost and Value Averaging. [...]

By: Moments of Fame « Funny about Money

Moments of Fame « Funny about Money — Tue, 21 Oct 2008 02:18:58 +0000

[...] I especially enjoyed Patrick’s explanation, at Cash Money Life, of the difference between dollar cost averaging and value averaging. If J. Money’s jokes don’t cheer you, try Jim’s great stress-relief sites, [...]

By: Budgets are Sexy

Budgets are Sexy — Mon, 20 Oct 2008 01:33:11 +0000

Great post! I never hear of “Value averaging” all that much, so it was cool to read about something new to me. well put

By: Festive Link Love Carnivality #29 | Free From Broke

Festive Link Love Carnivality #29 | Free From Broke — Sun, 19 Oct 2008 13:22:22 +0000

[...] Cash Money Life show us the difference between dollar cost averaging and value averaging. [...]

By: The Friday gathering - Moving Edition

The Friday gathering - Moving Edition — Fri, 17 Oct 2008 12:34:56 +0000

[...] Dollar Cost Averaging vs. Value Averaging @ Cash, Money, Life [...]

By: Writer's Coin

Writer's Coin — Wed, 15 Oct 2008 23:03:56 +0000

This is a great resource for those that want to read more and see the plans in action:

http://www.studyfinance.com/jfsd/pdffiles/v13n1/marshall.pdf

By: Writer's Coin

Writer's Coin — Wed, 15 Oct 2008 22:33:38 +0000

Interesting alternative to DCA—I had never heard of it. While it does come across as market timing in sheep’s clothing, there is something “automatic” to it that keeps it from feeling like market timing. Definitely worth a shot.

By: Dividend Growth Investor

Dividend Growth Investor — Wed, 15 Oct 2008 14:19:18 +0000

I guess with value averaging you try to time the market by trying to buy low and not buy when it’s high. The problem is that during bull markets the prices only keep getting higher.. And in bear markets the prices keep getting lower.

I think that dollar cost averaging should work best for most people. Just set it, put it on autopilot and forget it.

My man from disciplined investing just published an article about returns of investors who time mutual funds versus buy and hold a simple index fund..

http://disciplinedinvesting.blogspot.com/2008/10/market-timing-dangers.html

By: Patrick

Patrick — Wed, 15 Oct 2008 02:58:24 +0000

Laura: I think that could bring in better returns over the long run, but you need to keep in mind that it may take a couple weeks for the changes in your 401(k) to take effect (while waiting for the next pay period).

Donny G: Good point – and definitely not the way to go. I just go after asset allocation coupled with low fees.

Jarhead: Yes and no. If you follow value averaging by the book, there could be times when you don’t contribute anything, or times when you contribute multiples of your normal contribution. I don’t think it is something I would follow to the letter, but in times when the entire market is down (such as now), I would consider upping my contributions if I could afford it.