Dca part1
- 1. Dollar Cost Averaging a The essential investment strategy for your monthly savings
- 2. Warren Buffet Investing is the art of putting cash in now to get even more cash out later
- 3. Dollar Cost Averaging b) “Lump sum” investment a) Regular savings (from your salary) Two ways of adding capital to your portfolio:
- 4. Investing your ongoing monthly savings Your stream of savings of income Ongoing (relatively small) amounts of money Build up into a chunk of money over time Position this stream cheaply now, to profit later
- 5. Dollar Cost Averaging Warren Buffet Investing is the art of putting cash in now to get even more cash out later
- 6. Dollar Cost Averaging – collecting units “ Confiscate those assets and attach them to my holdings”
- 7. Dollar Cost Averaging What market characteristics should you look for?
- 8. Collecting units in a rising market 233 $50 $45 $40 $35 $20 $30 $55 227 222 217 213 204 Total Units 1316
- 9. Collecting units in a dipping market 233 244 Total Units 1695 294 345 323 256 $50 $45 $40 $35 $20 $30 $55
- 10. Collect more units in a dipping market $50 $45 $40 $35 $20 $30 $55 244 294 345 323 256 233 227 222 217 213 204
- 11. DCA: Collecting units 1316 units 1695 units You collected In rising market In dipping market
- 12. DCA: Collecting units $ 64,498 $ 66,105 You invested 1316 units 1695 units $ 4,498 $ 6,105 Now worth Current profit You collected In rising market In dipping market $ 60,000 $ 60,000 7% 10%
- 13. Collecting units in a rising market Total Units 1316 Now worth $ 64,498 $50 $45 $40 $35 $20 $30 $55
- 14. Collecting units in a dipping market Total Units 1695 Now worth $ 66,105 $50 $45 $40 $35 $20 $30 $55
- 15. DCA: Collecting units $ 64,498 $ 66,105 You invested 1316 units 1695 units $ 4,498 $ 6,105 Now worth Current profit You collected In rising market In dipping market $ 60,000 $ 60,000 7% 10%
- 16. Dollar Cost Averaging What happens if you Dollar Cost cheaply … then wait?
- 17. Total Units 1316 Now worth $ 65,814 Collecting units in a rising market $50 $45 $40 $35 $20 $30 $55
- 18. Total Units 1695 Now worth $ 84,750 Collecting units in a dipping market $50 $45 $40 $35 $20 $30 $55
- 19. DCA: Collecting units $ 65,814 $ 84,750 You invested 1316 units 1695 units $ 5,814 $ 24,750 Now worth Current profit You collected In rising market In dipping market $ 60,000 $ 60,000 10% 41%
- 20. 7% 10% Collecting units in a rising market $50 $45 $40 $35 $20 $30 $55
- 21. 10% 41% Collecting units in a dipping market $50 $45 $40 $35 $20 $30 $55
- 22. Dollar Cost Averaging Warren Buffet Investing is the art of putting cash in now to get even more cash out later
- 23. Dollar Cost Averaging Dollar Cost a cheap market to lower your average purchase price
- 24. Collecting units in a rising market $50 $45 $40 $35 $20 $30 $55
- 25. Collecting units in a dipping market $50 $45 $40 $35 $20 $30 $55
- 26. DCA: Collecting units $ 35.40 $ 45.60 $50 $45 $40 $35 $20 $30 $55
- 27. Dollar Cost Averaging “ Confiscate those assets and attach them to my holdings”
- 28. Where investors go wrong… $ 1,000 invested monthly for 5 years What your statements will look like…
Editor's Notes
- #3: The investment foundations you lay down now will determine the quality of lifestyle you’ll eventually have. Three elements will determine how wealthy you’ll eventually end up: How much you invested How long you invested for How well you invested Lets look at these When I started my career 15 years ago, I was young and ambitious and naturally I tended to attract those kind of cclients All in the same position as me, startign out in their carees, building somethingdidnt ave big chunks f money, bec we were all in our mid 20s Now Average portfolio size 1.3 million Started savign from their montly salary, and inveting that. So they did all of these 3 things, consitently building their portfolios ver the time they’ve been clients Lets look at that Lets take a look
- #4: The investment foundations you lay down now will determine the quality of lifestyle you’ll eventually have. Three elements will determine how wealthy you’ll eventually end up: How much you invested How long you invested for How well you invested Lets look at these When I started my career 15 years ago, I was young and ambitious and naturally I tended to attract those kind of cclients All in the same position as me, startign out in their carees, building somethingdidnt ave big chunks f money, bec we were all in our mid 20s Now Average portfolio size 1.3 million Started savign from their montly salary, and inveting that. So they did all of these 3 things, consitently building their portfolios ver the time they’ve been clients Lets look at that Lets take a look
- #5: The investment foundations you lay down now will determine the quality of lifestyle you’ll eventually have. Three elements will determine how wealthy you’ll eventually end up: How much you invested How long you invested for How well you invested Lets look at these When I started my career 15 years ago, I was young and ambitious and naturally I tended to attract those kind of cclients All in the same position as me, startign out in their carees, building somethingdidnt ave big chunks f money, bec we were all in our mid 20s Now Average portfolio size 1.3 million Started savign from their montly salary, and inveting that. So they did all of these 3 things, consitently building their portfolios ver the time they’ve been clients Lets look at that Lets take a look
- #6: The investment foundations you lay down now will determine the quality of lifestyle you’ll eventually have. Three elements will determine how wealthy you’ll eventually end up: How much you invested How long you invested for How well you invested Lets look at these When I started my career 15 years ago, I was young and ambitious and naturally I tended to attract those kind of cclients All in the same position as me, startign out in their carees, building somethingdidnt ave big chunks f money, bec we were all in our mid 20s Now Average portfolio size 1.3 million Started savign from their montly salary, and inveting that. So they did all of these 3 things, consitently building their portfolios ver the time they’ve been clients Lets look at that Lets take a look
- #7: Dynasty, Alexis Carrington
- #8: The investment foundations you lay down now will determine the quality of lifestyle you’ll eventually have. Three elements will determine how wealthy you’ll eventually end up: How much you invested How long you invested for How well you invested Lets look at these When I started my career 15 years ago, I was young and ambitious and naturally I tended to attract those kind of cclients All in the same position as me, startign out in their carees, building somethingdidnt ave big chunks f money, bec we were all in our mid 20s Now Average portfolio size 1.3 million Started savign from their montly salary, and inveting that. So they did all of these 3 things, consitently building their portfolios ver the time they’ve been clients Lets look at that Lets take a look
- #9: Disciplined ongoing monthly investment into a particular market
- #10: Disciplined ongoing monthly investment into a particular market
- #11: Disciplined ongoing monthly investment into a particular market
- #12: Lets say you stated inveting at 30 Some of you might be younger, which si evena better position to be in You want to be a millionaire by the time you’re 60 So you have 30 years to comound your invsetmetns Do the calculation – need toinvest 1202 to have a million $ at 60 If you start at 35, you have 5 years less to comound, 25, so you’l ned 1679 40 20 2433 Start at 30 instead of 40 – those 10 years means you have ot save TWICE as much just ot get to the same posiitom 45 15 3741 The earlier you start, the easier it is Money makes money
- #13: Lets say you stated inveting at 30 Some of you might be younger, which si evena better position to be in You want to be a millionaire by the time you’re 60 So you have 30 years to comound your invsetmetns Do the calculation – need toinvest 1202 to have a million $ at 60 If you start at 35, you have 5 years less to comound, 25, so you’l ned 1679 40 20 2433 Start at 30 instead of 40 – those 10 years means you have ot save TWICE as much just ot get to the same posiitom 45 15 3741 The earlier you start, the easier it is Money makes money
- #14: Disciplined ongoing monthly investment into a particular market
- #15: Disciplined ongoing monthly investment into a particular market
- #16: Lets say you stated inveting at 30 Some of you might be younger, which si evena better position to be in You want to be a millionaire by the time you’re 60 So you have 30 years to comound your invsetmetns Do the calculation – need toinvest 1202 to have a million $ at 60 If you start at 35, you have 5 years less to comound, 25, so you’l ned 1679 40 20 2433 Start at 30 instead of 40 – those 10 years means you have ot save TWICE as much just ot get to the same posiitom 45 15 3741 The earlier you start, the easier it is Money makes money
- #17: The investment foundations you lay down now will determine the quality of lifestyle you’ll eventually have. Three elements will determine how wealthy you’ll eventually end up: How much you invested How long you invested for How well you invested Lets look at these When I started my career 15 years ago, I was young and ambitious and naturally I tended to attract those kind of cclients All in the same position as me, startign out in their carees, building somethingdidnt ave big chunks f money, bec we were all in our mid 20s Now Average portfolio size 1.3 million Started savign from their montly salary, and inveting that. So they did all of these 3 things, consitently building their portfolios ver the time they’ve been clients Lets look at that Lets take a look
- #18: Disciplined ongoing monthly investment into a particular market
- #19: Disciplined ongoing monthly investment into a particular market
- #20: Lets say you stated inveting at 30 Some of you might be younger, which si evena better position to be in You want to be a millionaire by the time you’re 60 So you have 30 years to comound your invsetmetns Do the calculation – need toinvest 1202 to have a million $ at 60 If you start at 35, you have 5 years less to comound, 25, so you’l ned 1679 40 20 2433 Start at 30 instead of 40 – those 10 years means you have ot save TWICE as much just ot get to the same posiitom 45 15 3741 The earlier you start, the easier it is Money makes money
- #21: Disciplined ongoing monthly investment into a particular market
- #22: Disciplined ongoing monthly investment into a particular market
- #23: The investment foundations you lay down now will determine the quality of lifestyle you’ll eventually have. Three elements will determine how wealthy you’ll eventually end up: How much you invested How long you invested for How well you invested Lets look at these When I started my career 15 years ago, I was young and ambitious and naturally I tended to attract those kind of cclients All in the same position as me, startign out in their carees, building somethingdidnt ave big chunks f money, bec we were all in our mid 20s Now Average portfolio size 1.3 million Started savign from their montly salary, and inveting that. So they did all of these 3 things, consitently building their portfolios ver the time they’ve been clients Lets look at that Lets take a look
- #24: The investment foundations you lay down now will determine the quality of lifestyle you’ll eventually have. Three elements will determine how wealthy you’ll eventually end up: How much you invested How long you invested for How well you invested Lets look at these When I started my career 15 years ago, I was young and ambitious and naturally I tended to attract those kind of cclients All in the same position as me, startign out in their carees, building somethingdidnt ave big chunks f money, bec we were all in our mid 20s Now Average portfolio size 1.3 million Started savign from their montly salary, and inveting that. So they did all of these 3 things, consitently building their portfolios ver the time they’ve been clients Lets look at that Lets take a look
- #25: Disciplined ongoing monthly investment into a particular market
- #26: Disciplined ongoing monthly investment into a particular market
- #27: Disciplined ongoing monthly investment into a particular market
- #28: Dynasty, Alexis Carrington
- #29: The investment foundations you lay down now will determine the quality of lifestyle you’ll eventually have. Three elements will determine how wealthy you’ll eventually end up: How much you invested How long you invested for How well you invested Lets look at these When I started my career 15 years ago, I was young and ambitious and naturally I tended to attract those kind of cclients All in the same position as me, startign out in their carees, building somethingdidnt ave big chunks f money, bec we were all in our mid 20s Now Average portfolio size 1.3 million Started savign from their montly salary, and inveting that. So they did all of these 3 things, consitently building their portfolios ver the time they’ve been clients Lets look at that Lets take a look