Comments on: Working Dollars: Investment Lessons from 1957

By: Reality

Reality — Tue, 04 Mar 2008 12:42:39 +0000

Keep in mind, that 13K raise means MORE TAXES at the end of the year. I bet that put you into an entirely new tax bracket.

By: BillinDetroit

BillinDetroit — Tue, 05 Jun 2007 04:03:50 +0000

GG
Huh? Did you even watch the video?

When the investment level remains relatively constant and the investment time intervals are regular, it’s DCA.

A lump sum plays no part in the equation.

When this video (film, actually) was produced, ‘index funds’ weren’t available. For current investors, DCA has gotten almost insanely easy. Just take a look at the track records for a dozen or so index funds that are still open to new investors (also, take a look at the track records of their management) and choose one. Much simpler than researching a couple thousand stocks and much cheaper than a subscription to IBD (Investors Business Daily).

Due diligence on your part should reveal a couple of good index fund possibilities. Choose one … or more … and make a beginning.

Their aren’t many circumstances where DCA won’t work … but here are two of them:

1) your chosen stock / fund tanks and -stays- down. Short of bankruptcy followed by dissolution, this is highly unlikely.

2) your life circumstances change and you NEED the money at an inopportune time. Congratulations, you are now in the same boat as about a zillion other ‘market timers’.

Like most other investment plans, if you begin investing before you realize you need to, you’ll be the bigger winner.

By: G G

G G — Mon, 04 Jun 2007 23:13:22 +0000

It’s not technically dollar cost averaging, unless you start with a lump sum.

By: rhbee

rhbee — Sun, 03 Jun 2007 15:39:14 +0000

Remember book and board bookcases? My sister-in-law can’t understand why we still have them. She’s broke and incredibly in debt. We own our own cars, have no debt beyond the mortgages on our cash flowing rentals, and spend several time a year going on vacations. She drives a BMW that she still owes 15,000 on. We’re a twentieth century family and she just can’t understand us.

By: Spike

Spike — Sun, 03 Jun 2007 09:23:12 +0000

Lifestyle inflation is something I try not to fall into. You can live a good life now without buying superficial things all the time. Like anything that makes you feel good, once you are on that road it’s difficult to get off it. I’ve seen a lot of people lose their jobs/take a dip in income and struggle to take the steps back financially to survive.

Organize IT

By: Psychohistory Investment Lessons from 1957 «

Psychohistory Investment Lessons from 1957 « — Sun, 03 Jun 2007 05:04:31 +0000

[...] thanks to Get Rich Slowly for this one. Here’s a 1957 cartoon about the virtues of stock market investing from the New York [...]

By: Ed

Ed — Sat, 02 Jun 2007 23:33:32 +0000

Hey Sam,

That is a pretty good raise. I wish I got almost $13k year raise….Congratulations!

By: Sam

Sam — Sat, 02 Jun 2007 21:36:50 +0000

I generally agree with the premise of investing or saving money from raises, bonuses, or “windfall” money. But, I also think that its important to treat/reward oneself with a small % of such money.

I recently received a raise at work that increased my semi-monthly take home pay by $531 each pay check. My 10% of paycheck savings that goes to our emergency fund increased to match the raise. I’m also putting the bulk of the rest of that increase towards our debt repayment plan. But, we are also using 2 pay checks worth of the increase to pay for a very nice hotel when we visit California in the fall.

By: Dy (www.dyphan.com)

Dy (www.dyphan.com) — Sat, 02 Jun 2007 19:59:06 +0000

I think that’s the main thing most people miss out on. That as they get rewarded for their hard work, they inevitably reward themselves and their lifestyle invariably moves upwards. People don’t realize how much better their retirements would be if they could just delay their gratification. On the other hand, living a good life now, does seem pleasing.