Replies to post #729 on Systematic Investing Group (SIG)

[Toofuzzy]

Hi Info

This particular plan is ASSET ALLOCATION as opposed to dollar cost averaging.

To keep your allocation where you want it you rebalance once in awhile. You can use additional cash to rebalance with by adding to the total account.

Re dollar cost averaging:

I have thought of figuring out how much you would have to add each year with a 10% return to get 20 times what you need to live on (minus social Security etc)

So you would come up with some $ amount like $5,000 / year compounded at 10%

So first year you should have $5000
next year $ 10,500
third year 16,050
etc

If you have more than you need to be on track then put it in to CASH (don't count the CASH as part of the account)

If you are below what you are supposed to have use some of the CASH account to buy more stock.

Using Twinvest/Syncrovest where there is an actual systematic allocation to stock probably makes even more sence. The point is to figure out the glide path you need to get where you want and to stick to it. This does not address ASSET ALLOCATION which my other post did.

Toofuzzy