Dollar Cost Averaging or Lump Sum into LICs and ETFs

Discussion in 'Share Investing Strategies, Theories & Education' started by Silverson, 6th Jan, 2018.

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  1. Scott No Mates

    Scott No Mates Well-Known Member

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    Put a foot in each court - lump sum to get the ball rolling, then your monthly/quarterly contributions.
     
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  2. SatayKing

    SatayKing Well-Known Member

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    Share Purchase Plan. Sometimes companies offer these. No shareholder approval is necessary. Can offer once in a 12 month period. Shareholders can purchase up to $15k of shares. Purchase price is usually discounted to the Net Tangible Assets and, normally, is determined by the volume weighted average price for three to five days after the SPP closes for applications.

    Hope I've explained it properly.
     
  3. skater

    skater Well-Known Member

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    Oh, I knew that! Not the rest of it mind you, just what SPP meant. It shows I'm listening.:p
     
  4. SatayKing

    SatayKing Well-Known Member

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    Lurverly! We'll keep on chipping away @skater and then you'll fall under our collective spell.
     
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  5. SatayKing

    SatayKing Well-Known Member

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    Further quick ramble of wrong thoughts then to the delightful confines of a Boeing 737.

    Account-based pension is say $60k, the $15k drawdown can be part of that. SPP purchased and SMSF buys from you. Cash back in personal hands so you're no worse off cash wise really.
     
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  6. Anthony Brew

    Anthony Brew Well-Known Member

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    Can you define a correction in a tangible way to be able to identify it?
     
  7. Pier1

    Pier1 Well-Known Member

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    This:
     
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  8. sash

    sash Well-Known Member

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    Good post...was the question I had and did not ask. :p

    Thanks @SatayKing @Nodrog and others...learning a lot..
     
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  9. Pier1

    Pier1 Well-Known Member

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    When you log onto your account and you start sweating, your left arm starts hurting and you have trouble breathing......

    First timers this is usually about -5%, but with a bit of practice you should be able to get this up to -25% before the onset of symptoms.
     
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  10. Silverson

    Silverson Well-Known Member

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    Hahahahaha this forum needs a 'love post' option!
    We can laugh but almost certainly not a laughing matter when found in this predicament.
     
  11. Nodrog

    Nodrog Well-Known Member

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    I was simply relating to keeping the cost of brokerage sensible. Some suggest around $4K is a suitable amount. If one only has say $2K saved but a favoured LIC / ETF appears very good value then it might be worth buying regardless of brokerage cost. What that is will vary with each person’s view of the asset.

    But if I had to suggest a figure if one want’s specific rules then perhaps use the accepted criterea of a correction being at least 10%.

    Just woke up from a snooze so brain dead at the moment:confused:.
     
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  12. skater

    skater Well-Known Member

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    With the cost of brokerage, is that regardless of using a broker?

    Sorry, very newbie question......I thought there would be no brokerage if you bought direct.
     
  13. Nodrog

    Nodrog Well-Known Member

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    skater and TreeChange@50 like this.
  14. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Mathematics plus history says lump sum.

    It doesn't mean you won't buy before the biggest crash in history or conversely the biggest increase in history.

    You're just playing the poker hand you are dealt.

    Not advice.
     
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  15. Zenith Chaos

    Zenith Chaos Well-Known Member

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    Share Purchase Plan.
     
  16. skater

    skater Well-Known Member

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  17. Swuzz

    Swuzz Well-Known Member

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    My a
    My approach when setting up a portfolio recently was to purchase the full amount for each fund as one trade but spread these purchases out a bit.
    A LIC or ETF should have enough diversity to mitigate company specific news and for market wide events having all in one fund v partial holding in a few will be much of a muchness in terms of exposure.
     
  18. SatayKing

    SatayKing Well-Known Member

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    I'm jumping into this one boots and all. For Eff Sake.

    SPP Harvester - OnMarket

    PS: I am too lazy to bother creating another thread.
     
  19. Islay

    Islay Well-Known Member

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    Those fees!!!
     
    number 5 and Never giveup like this.
  20. SatayKing

    SatayKing Well-Known Member

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    No idea about the fees involved. Didn't go past the first page.

    Wouldn't have known about this mob except for an email which was sent to me containing the link and some, er, "reasoned" comments.
     

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