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401 K Changes
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<blockquote data-quote="anonymous6" data-source="post: 632297"><p>DCA is when you buy shares of a mutual/stock , usually on a monthly basis in the same amount. works good on an automatic basis.</p><p> </p><p>I invest $100 a month in the S&P 500 ( as an example ). If the share is selling for $1 , I bought 100 shares that month. next month the price went up to $1.20 so i only got about 80 shares. next m0nth the price went down to .50 a share so with my $100 I got 200 shares.</p><p> </p><p>after 3 months , let;s say the price went up to the original $1 a share . back where i started , right?</p><p> </p><p>but I invested $300 but have 380 shares worth $380 instead of just $300 with a one time investment.</p><p> </p><p>the share price can go up and down and even not change over the course of a year or longer but you have made good money bc you bought more shares when the price is down automatically.</p><p> </p><p>that's how we have our IRA investments. automatic every month from our checking acct.</p><p> </p><p>the 401k works exactly the same with paycheck withdrawal. that is why my 401k is the same now as it was when the dow was at 14000. I got a ton more shares when the dow was at 6800 and while it was rising to it;s current 10000. If it goes back up to 14k , I'll be up another 40% plus.</p><p> </p><p>you make a ton if the market goes up and down.( and back up )</p><p> </p><p>as you can see DCA works a lot better than one time investments.</p></blockquote><p></p>
[QUOTE="anonymous6, post: 632297"] DCA is when you buy shares of a mutual/stock , usually on a monthly basis in the same amount. works good on an automatic basis. I invest $100 a month in the S&P 500 ( as an example ). If the share is selling for $1 , I bought 100 shares that month. next month the price went up to $1.20 so i only got about 80 shares. next m0nth the price went down to .50 a share so with my $100 I got 200 shares. after 3 months , let;s say the price went up to the original $1 a share . back where i started , right? but I invested $300 but have 380 shares worth $380 instead of just $300 with a one time investment. the share price can go up and down and even not change over the course of a year or longer but you have made good money bc you bought more shares when the price is down automatically. that's how we have our IRA investments. automatic every month from our checking acct. the 401k works exactly the same with paycheck withdrawal. that is why my 401k is the same now as it was when the dow was at 14000. I got a ton more shares when the dow was at 6800 and while it was rising to it;s current 10000. If it goes back up to 14k , I'll be up another 40% plus. you make a ton if the market goes up and down.( and back up ) as you can see DCA works a lot better than one time investments. [/QUOTE]
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