Comments on: Ringgit or Dollar Cost Averaging http://kclau.com/investment/ringgit-or-dollar-cost-averaging/ Personal Finance Money Tips Thu, 09 Feb 2012 02:31:24 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Abu Adilah http://kclau.com/investment/ringgit-or-dollar-cost-averaging/comment-page-1/#comment-153098 Abu Adilah Sat, 25 Sep 2010 20:12:34 +0000 http://kclau.com/?p=51#comment-153098 Hi KClau, I completely agree with you that people lack the discipline to save money and too emotional with the ups and downs of the financial market. Unfortunately even though DCA works, it doesn't work well, just because buying when price is still moving down can't be good. There is a small breed of investors who have the expertise to maneuver the ups and downs of the financial market well. Now that we have free or low cost switching mechanism, it is really possible to combine the best of both worlds. The advantage of disciplined saving with the expertise of market timing. A client can make consistent saving to a money market/bond fund for example, which is generally safe but low return. The agent who is hopefully an expert on market timing can then offer the client his/her opinion on when is the time to switch to equity fund. I see this as a niche area, people who really like to maximize the return should try to look for these kind of agents. They are very rare,unlike many agents (who mean well) they don't just push you to go into loaded funds all the time to maximize their comission, hopefully they go more for the satisfaction of the clients and long term business relationship with their clients. Hi KClau,
I completely agree with you that people lack the discipline to save money and too emotional with the ups and downs of the financial market. Unfortunately even though DCA works, it doesn’t work well, just because buying when price is still moving down can’t be good. There is a small breed of investors who have the expertise to maneuver the ups and downs of the financial market well. Now that we have free or low cost switching mechanism, it is really possible to combine the best of both worlds. The advantage of disciplined saving with the expertise of market timing. A client can make consistent saving to a money market/bond fund for example, which is generally safe but low return. The agent who is hopefully an expert on market timing can then offer the client his/her opinion on when is the time to switch to equity fund. I see this as a niche area, people who really like to maximize the return should try to look for these kind of agents. They are very rare,unlike many agents (who mean well) they don’t just push you to go into loaded funds all the time to maximize their comission, hopefully they go more for the satisfaction of the clients and long term business relationship with their clients.

]]> By: Everything about Unit Trust in Malaysia http://kclau.com/investment/ringgit-or-dollar-cost-averaging/comment-page-1/#comment-152290 Everything about Unit Trust in Malaysia Wed, 02 Jun 2010 09:32:37 +0000 http://kclau.com/?p=51#comment-152290 [...] Ringgit or Dollar Cost Averaging [...] [...] Ringgit or Dollar Cost Averaging [...]

]]> By: The secret of investing in Unit Trust http://kclau.com/investment/ringgit-or-dollar-cost-averaging/comment-page-1/#comment-151847 The secret of investing in Unit Trust Tue, 06 Apr 2010 04:19:27 +0000 http://kclau.com/?p=51#comment-151847 [...] 1. Ringgit Cost Averaging [...] [...] 1. Ringgit Cost Averaging [...]

]]> By: KCLau http://kclau.com/investment/ringgit-or-dollar-cost-averaging/comment-page-1/#comment-151841 KCLau Mon, 05 Apr 2010 04:10:02 +0000 http://kclau.com/?p=51#comment-151841 Hi Noob, Thanks for pointing to that article. There is always pros and cons in everything. The most value I can think of about DCA is that it is a system that works. Imagine without doing that, we will be pretty much doing all the investment manually. People just lack the discipline and time to initiate every savings, not mentioning all the emotions involved when we are constantly react to the financial market. Hi Noob,

Thanks for pointing to that article. There is always pros and cons in everything.
The most value I can think of about DCA is that it is a system that works.
Imagine without doing that, we will be pretty much doing all the investment manually. People just lack the discipline and time to initiate every savings, not mentioning all the emotions involved when we are constantly react to the financial market.

]]> By: noob http://kclau.com/investment/ringgit-or-dollar-cost-averaging/comment-page-1/#comment-151826 noob Fri, 02 Apr 2010 08:04:17 +0000 http://kclau.com/?p=51#comment-151826 The costly myth of dollar cost averaging.... http://moneycentral.msn.com/content/P104966.asp now i know i'm not the only person that feel something fishy with DCA...anyhow, investing is better than not investing... i'm not good at timing market...but i got a general rule of thumb from another investor...works for me... *Jan - high price *Feb / Mac - low price *April / Mei - high price *Sept / Oct - low price what's your opinion, KC? The costly myth of dollar cost averaging….
http://moneycentral.msn.com/content/P104966.asp

now i know i’m not the only person that feel something fishy with DCA…anyhow, investing is better than not investing…

i’m not good at timing market…but i got a general rule of thumb from another investor…works for me…
*Jan – high price
*Feb / Mac – low price
*April / Mei – high price
*Sept / Oct – low price

what’s your opinion, KC?

]]> By: How to choose which unit trust fund to invest?[Q&A] http://kclau.com/investment/ringgit-or-dollar-cost-averaging/comment-page-1/#comment-151824 How to choose which unit trust fund to invest?[Q&A] Fri, 02 Apr 2010 03:51:37 +0000 http://kclau.com/?p=51#comment-151824 [...] fixed and regular investment. This is about applying the dollar cost averaging strategy. You will definitely win in the long [...] [...] fixed and regular investment. This is about applying the dollar cost averaging strategy. You will definitely win in the long [...]

]]> By: Father Sez » Archive » There are a silver lining to this financial mess going on around us….for me anyway http://kclau.com/investment/ringgit-or-dollar-cost-averaging/comment-page-1/#comment-70388 Father Sez » Archive » There are a silver lining to this financial mess going on around us….for me anyway Mon, 10 Nov 2008 00:40:30 +0000 http://kclau.com/?p=51#comment-70388 [...] way to accumulate wealth. And included in the list of lessons is the method that I used, i.e. dollar cost averaging and the recommended ways to choose good stocks and unit [...] [...] way to accumulate wealth. And included in the list of lessons is the method that I used, i.e. dollar cost averaging and the recommended ways to choose good stocks and unit [...]

]]> By: “Horrors! Dow Jones dropped 300 points!” or should it be “Hooray, Dow Jones dropped 300 points” – An opportunity to stress test my investment philosophy « Father sez…… http://kclau.com/investment/ringgit-or-dollar-cost-averaging/comment-page-1/#comment-11793 “Horrors! Dow Jones dropped 300 points!” or should it be “Hooray, Dow Jones dropped 300 points” – An opportunity to stress test my investment philosophy « Father sez…… Wed, 12 Dec 2007 11:27:58 +0000 http://kclau.com/?p=51#comment-11793 [...] unit trusts (or mutual funds as some may call them) are left alone, and regularly invested on a “dollar cost averaging basis”. This post is only about my investment in individual [...] [...] unit trusts (or mutual funds as some may call them) are left alone, and regularly invested on a “dollar cost averaging basis”. This post is only about my investment in individual [...]

]]> By: Definition & Explanation of Value-cost Averaging Investment strategy http://kclau.com/investment/ringgit-or-dollar-cost-averaging/comment-page-1/#comment-3027 Definition & Explanation of Value-cost Averaging Investment strategy Sun, 14 Oct 2007 22:07:27 +0000 http://kclau.com/?p=51#comment-3027 [...] If you had invested in unit trust or mutual funds, I am sure that you had heard of Dollar-Cost Averaging (DCA). Another strategy not commonly used in unit trust investment is Value-Cost Averaging (VCA). For [...] [...] If you had invested in unit trust or mutual funds, I am sure that you had heard of Dollar-Cost Averaging (DCA). Another strategy not commonly used in unit trust investment is Value-Cost Averaging (VCA). For [...]

]]> By: kclau http://kclau.com/investment/ringgit-or-dollar-cost-averaging/comment-page-1/#comment-1079 kclau Mon, 13 Aug 2007 04:28:47 +0000 http://kclau.com/?p=51#comment-1079 Hi Relax, if you invest lump sum, it is riskier than RCA because if the market doesn't perform as you expected, your return of the year might be lower than RCA. Of course, there is no right or wrong. But try not to time the market. Even Warren Buffett never does that. The easiest way for passive investor is: 1. Invest according to your asset allocation all the time 2. If you have 12K, no need to wait to do RCA, just invest fully according to your asset allocation - e.g. 10% cash, 30% bond, 30% local equity, 30% foreign equity etc. 3. Keep investing whenever you have money, and according to the asset allocation. 4. Rebalance your portfolio from time to time, maybe once a year. Then you will be doing lump sum investment plus the benefit of RCA because you do it regularly. KC Hi Relax,

if you invest lump sum, it is riskier than RCA because if the market doesn’t perform as you expected, your return of the year might be lower than RCA.

Of course, there is no right or wrong. But try not to time the market. Even Warren Buffett never does that.

The easiest way for passive investor is:
1. Invest according to your asset allocation all the time
2. If you have 12K, no need to wait to do RCA, just invest fully according to your asset allocation – e.g. 10% cash, 30% bond, 30% local equity, 30% foreign equity etc.
3. Keep investing whenever you have money, and according to the asset allocation.
4. Rebalance your portfolio from time to time, maybe once a year.

Then you will be doing lump sum investment plus the benefit of RCA because you do it regularly.

KC

]]> By: Relax http://kclau.com/investment/ringgit-or-dollar-cost-averaging/comment-page-1/#comment-1070 Relax Sun, 12 Aug 2007 20:43:55 +0000 http://kclau.com/?p=51#comment-1070 one question. if I have 12k RM If I use RCA, I put 1k per month and I might benefit from the pricing. If I put 12k a lump sum as initial capital, I will get the benefit of full year return for my 12k. Both seems to be beneficial strategy, but which one is the better choice? one question.

if I have 12k RM

If I use RCA, I put 1k per month and I might benefit from the pricing.

If I put 12k a lump sum as initial capital, I will get the benefit of full year return for my 12k.

Both seems to be beneficial strategy, but which one is the better choice?

]]> By: What is the First Insurance Policy We should buy for our Child? | Case Study | KCLau's Money Tips http://kclau.com/investment/ringgit-or-dollar-cost-averaging/comment-page-1/#comment-830 What is the First Insurance Policy We should buy for our Child? | Case Study | KCLau's Money Tips Mon, 30 Jul 2007 09:52:39 +0000 http://kclau.com/?p=51#comment-830 [...] investment fund to lock the capital gain5. pay monthly or quarterly, instead of yearly to apply the Ringgit Cost Averaging [...] [...] investment fund to lock the capital gain5. pay monthly or quarterly, instead of yearly to apply the Ringgit Cost Averaging [...]

]]> By: How to Avoid Investment-linked Policy Lapse http://kclau.com/investment/ringgit-or-dollar-cost-averaging/comment-page-1/#comment-141 How to Avoid Investment-linked Policy Lapse Wed, 30 May 2007 00:55:58 +0000 http://kclau.com/?p=51#comment-141 [...] Ringgit cost averaging strategy– pay monthly or quarterly premium to take advantage of the ringgit cost averaging strategy. As usual, insurance companies charge additional 5% of insurance charges for monthly mode of payment. But it is still worthy to do so when you take into account the time value of money. [...] [...] Ringgit cost averaging strategy– pay monthly or quarterly premium to take advantage of the ringgit cost averaging strategy. As usual, insurance companies charge additional 5% of insurance charges for monthly mode of payment. But it is still worthy to do so when you take into account the time value of money. [...]

]]> By: How to monitor unit trust portfolio using Signal Invest | KCLau’s Money Tips http://kclau.com/investment/ringgit-or-dollar-cost-averaging/comment-page-1/#comment-64 How to monitor unit trust portfolio using Signal Invest | KCLau’s Money Tips Mon, 14 May 2007 04:13:56 +0000 http://kclau.com/?p=51#comment-64 [...] Ringgit or Dollar Cost Averaging [...] [...] Ringgit or Dollar Cost Averaging [...]

]]> By: Everything about Unit Trust in Malaysia | KCLau’s Money Tips http://kclau.com/investment/ringgit-or-dollar-cost-averaging/comment-page-1/#comment-41 Everything about Unit Trust in Malaysia | KCLau’s Money Tips Fri, 11 May 2007 06:36:58 +0000 http://kclau.com/?p=51#comment-41 [...] Ringgit or Dollar Cost Averaging [...] [...] Ringgit or Dollar Cost Averaging [...]

]]> By: 10 easy tips to generate passive income | KCLau’s Money Tips http://kclau.com/investment/ringgit-or-dollar-cost-averaging/comment-page-1/#comment-12 10 easy tips to generate passive income | KCLau’s Money Tips Thu, 26 Apr 2007 09:42:05 +0000 http://kclau.com/?p=51#comment-12 [...] renews his policy. A unit trust agent will get residual income for his clients who practice Ringgit or Dollar Cost Averaging. If you are serious to know more, contact me for more details. Some basic requirements [...] [...] renews his policy. A unit trust agent will get residual income for his clients who practice Ringgit or Dollar Cost Averaging. If you are serious to know more, contact me for more details. Some basic requirements [...]

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