Download
1 / 4
40 likes | 50 Views
Richard Cayne Meyer International illustrates Dollar Cost Averaging <br>Bangkok Thailand
E N D
DOLLAR COST AVERAGING
Example One: Averaging in an Increasing Market Unit Price $16. 00 $15. 00 $14. 00 $13. 00 $12. 00 $11. 00 $10. 00 1 2 3 4 5 6 7 8 9 10 11 12 Units Purchased 100 100 95 95 90 90 86 83 85 80 80 76 74 75 71 68 70 66 64 65 60 1 2 3 4 5 6 7 8 9 10 11 12 Invest $1000 a month for 1 year Units Purchased: 953 Total Cost: $12,000 Market Value: $14,771.50 $ Growth: % Growth: $2,771.50 23%
Example Two: Averaging in a Down and then Up Market Unit Price $10. 00 $9. 00 $8. 00 $7. 00 $6. 00 1 2 3 4 5 6 7 8 9 10 11 12 Units Purchased 142 145 133 133 135 125 125 125 117 117 115 111 111 105 105 105 100 95 1 2 3 4 5 6 7 8 9 10 11 12 Invest $1000 a month for 1 year Units Purchased: 1,424 Total Cost: $12,000 Market Value: $13,528 $ Growth: % Growth: $1,528 13% (despite the final purchase price being lower than the original purchase price)
Example Three: Averaging in an Fluctuating Market Unit Price $16. 00 $15. 00 $14. 00 $13. 00 $12. 00 $11. 00 $10. 00 $9. 00 1 2 3 4 5 6 7 8 9 10 11 12 Units Purchased 105 105 100 100 95 95 90 90 86 83 85 80 80 76 74 75 71 70 66 64 65 60 1 2 3 4 5 6 7 8 9 10 11 12 Invest $1000 a month for 1 year Units Purchased: 990 Total Cost: $12,000 Market Value: $15,435.50 $ Growth: % Growth: $3,345.00 28%
