Synchrovest questions:
Hi Lostcowboy (and all). I have downloaded the synchrovest spreadsheet and I have a few questions for you:
1. In the post where you described synchrovest, you mentioned starting with a 75/25 ratio, with future contribution calculations based on that ratio. On the spreadsheet it is 80/20. Why the difference? Did you find that 80% worked better? Did you try other percentages? I plan on testing it myself, but before I get into it I wanted to get your reasoning.
2. Seeking opinions on this one. I will be starting up a 403(b) plan very soon, which I plan to synchrovest with monthly contributions. The problem is that my monthly contribution gets mailed in by my employer, and I will have no way of knowing what the exact price is when the funds arrive (and thus what ratios to use for stock/cash). I have come up with a way to possibly solve this problem, but I want opinions on whether this could work or not:
My "solution" is this: send the entire contribution to the money market portion of the account. When the funds arrive, use the current day price to come up with the investment ratios, then do an online transfer based on that day's prices. Does that seem like a reasonable way to do it?
One other problem: since this is a mutual fund (a tech fund for volatility), transactions are effective the following day. I won't know exactly what price I will get, and I have to base the contribution ratio on the previous day's closing price. I'm hoping that long term it won't have too great of an effect, but I'd like opinions on this also.
Whew, long post! All comments welcome. Thanks in advance!
Codypup
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