Comments on: Old Money Versus New Money http://thefinancebuff.com/old-money-versus-new-money.html like a friend telling you about money ... Fri, 10 Feb 2012 17:31:35 +0000 hourly 1 http://wordpress.org/?v=3.1.2 By: TFB http://thefinancebuff.com/old-money-versus-new-money.html#comment-1157 TFB Mon, 24 Nov 2008 01:42:06 +0000 http://thefinancebuff.com/2008/11/old-money-versus-new-money.html#comment-1157 Dollar cost averaging makes sense if you suspect that the market is too high or if you are not sure what your ultimate asset allocation will be. So you start dipping your toe into the market while figuring out your long-term plan. Dollar cost averaging wins if the market goes down. It loses if the market goes up. But then if the market goes down, simply waiting works better than dollar cost averaging. Without a crystal ball for where the market will go, dollar cost averaging can be considered a compromise. For more on investing a lump sum all at once versus buying over time, see previous post <a href="http://thefinancebuff.com/2008/01/buy-now-or-buy-gradually-over-time.html" rel="nofollow">Buy Now Or Buy Gradually Over Time?</a>. Dollar cost averaging makes sense if you suspect that the market is too high or if you are not sure what your ultimate asset allocation will be. So you start dipping your toe into the market while figuring out your long-term plan. Dollar cost averaging wins if the market goes down. It loses if the market goes up. But then if the market goes down, simply waiting works better than dollar cost averaging. Without a crystal ball for where the market will go, dollar cost averaging can be considered a compromise. For more on investing a lump sum all at once versus buying over time, see previous post Buy Now Or Buy Gradually Over Time?.

]]> By: calgeek http://thefinancebuff.com/old-money-versus-new-money.html#comment-1156 calgeek Mon, 24 Nov 2008 00:05:32 +0000 http://thefinancebuff.com/2008/11/old-money-versus-new-money.html#comment-1156 Yes, I agree it is artificial to distinguish between old money and new money. But does this say it never makes sense to dollar cost average a lump of cash (as opposed to buying over time because you have no choice)? I often wonder if the former kind of DCA only has emotional value, i.e. you feel you got a fair price because the market is more efficient over a larger time window. What does do you think? Yes, I agree it is artificial to distinguish between old money and new money. But does this say it never makes sense to dollar cost average a lump of cash (as opposed to buying over time because you have no choice)? I often wonder if the former kind of DCA only has emotional value, i.e. you feel you got a fair price because the market is more efficient over a larger time window. What does do you think?

]]> By: jennydecki http://thefinancebuff.com/old-money-versus-new-money.html#comment-1154 jennydecki Thu, 20 Nov 2008 14:55:25 +0000 http://thefinancebuff.com/2008/11/old-money-versus-new-money.html#comment-1154 This is a great post. I'm glad I'm not the only one who feels this way about new money. Knowing that it is a typical reaction, it will be much easier to talk myself out of illogical emotions tied to new money in the future. Before? It was an all out argument with myself that had me looking like a crazy woman LOL This is a great post. I’m glad I’m not the only one who feels this way about new money.

Knowing that it is a typical reaction, it will be much easier to talk myself out of illogical emotions tied to new money in the future. Before? It was an all out argument with myself that had me looking like a crazy woman LOL

]]> By: commish http://thefinancebuff.com/old-money-versus-new-money.html#comment-1146 commish Tue, 18 Nov 2008 18:45:54 +0000 http://thefinancebuff.com/2008/11/old-money-versus-new-money.html#comment-1146 mark me down as guilty. mark me down as guilty.

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