Hi Tom,you asked Have you figured a way to turn Synchrovest into something more than just an accumulation model? Can it be applied to a closed system with no incoming cash? I think it could be used in a closed system, If one were to change the spread sheet a little bit. The way I have it set up now the spread sheet will make your monthly planned investment out of the cash, if you have no money to put in (say you lost your job). To me that is a good ideal though. Right after Synchrovest has had a sale, it will not take much money to raise the Average cost,Then once the stock Price goes down below average Cost, Synchrovest will start dumping money into the stock at a very rapid rate. Normally when the stock has dropped in half from its high, Synchrovest will be out of money!
About A closed system. Lets say you have $10,000, divide that by 60 months that gives you a planned monthly installment of $166. Now you could invest $166 each month, as in a normal Synchrovest plan but I have found that is not the best way to do it.
The best way to do it is to use a planed investment of $166, but give Synchrovest the whole $10,000 on that first month, Synchrovest will put everything but the $166 in to the Cash account. Each month he will only take $166 out to invest, unless he finds some old antique stocks at a sale somewhere, and trust me Synchrovest does keep the bank book ready, to buy all the bargains he can see. But once the Stock price goes up above the Average Cost, you will see Synchrovest stick his nose up in the air, he don't want any common stock, not him, only that cheap antique stocks for him, and then just when you think He is only a collector, he sells the whole thing, and starts all over again.
Come see me at Systematic Investing group #board-966 lets talk formula plans.
