New Money

VA’s are fine, but you might also consider dollar cost averaging.  It’s a simple strategy that hedges your bet on which way the market is headed…

[quote=Indyone]VA's are fine, but you might also consider dollar cost averaging.  It's a simple strategy that hedges your bet on which way the market is headed...[/quote]

I've not changed my investment approach, but what I have changed is the way I am implementing it. I am generally investing about 60% of the new money that comes in, and then looking for opportunities to invest the rest. I figure if we get a correction, I have an opportunity to invest the rest and average down, if the markets keep going up, I am investing the rest with a bit of a cushion. What I try to avoid is the possibility of investing new money, finding myself down 7-8% quickly, and having to make 10% to get back to even.

[quote=pratoman]

[quote=Indyone]VA's are fine, but you might also consider dollar cost averaging.  It's a simple strategy that hedges your bet on which way the market is headed...[/quote]

I've not changed my investment approach, but what I have changed is the way I am implementing it. I am generally investing about 60% of the new money that comes in, and then looking for opportunities to invest the rest. I figure if we get a correction, I have an opportunity to invest the rest and average down, if the markets keep going up, I am investing the rest with a bit of a cushion. What I try to avoid is the possibility of investing new money, finding myself down 7-8% quickly, and having to make 10% to get back to even.

[/quote]

How well have you done at timing the market in the past? Just invest the money. Have you considered an annuity without a guarantee?

[quote=Bobby Hull][quote=pratoman]

[quote=Indyone]VA's are fine, but you might also consider dollar cost averaging.  It's a simple strategy that hedges your bet on which way the market is headed...[/quote]

I've not changed my investment approach, but what I have changed is the way I am implementing it. I am generally investing about 60% of the new money that comes in, and then looking for opportunities to invest the rest. I figure if we get a correction, I have an opportunity to invest the rest and average down, if the markets keep going up, I am investing the rest with a bit of a cushion. What I try to avoid is the possibility of investing new money, finding myself down 7-8% quickly, and having to make 10% to get back to even.

[/quote]

How well have you done at timing the market in the past? Just invest the money. Have you considered an annuity without a guarantee?

[/quote]

Not well at all. Thats why I am taking what I consider a hedged approach. As I said, if the market corrects in the next month, I've got more money to put in to leverage up, if it keeps going, I am investing the rest with a cushion. I am not trying to time the market, just avoid being in a position where I have to make 10% just to get back to even.

[quote=pratoman][quote=Bobby Hull][quote=pratoman]

[quote=Indyone]VA's are fine, but you might also consider dollar cost averaging.  It's a simple strategy that hedges your bet on which way the market is headed...[/quote]

I've not changed my investment approach, but what I have changed is the way I am implementing it. I am generally investing about 60% of the new money that comes in, and then looking for opportunities to invest the rest. I figure if we get a correction, I have an opportunity to invest the rest and average down, if the markets keep going up, I am investing the rest with a bit of a cushion. What I try to avoid is the possibility of investing new money, finding myself down 7-8% quickly, and having to make 10% to get back to even.

[/quote]

How well have you done at timing the market in the past? Just invest the money. Have you considered an annuity without a guarantee?

[/quote]

Not well at all. Thats why I am taking what I consider a hedged approach. As I said, if the market corrects in the next month, I've got more money to put in to leverage up, if it keeps going, I am investing the rest with a cushion. I am not trying to time the market, just avoid being in a position where I have to make 10% just to get back to even.

[/quote]

So...instead of timing the market, you're timing the market? Makes sense to me.

Whatever, call it what you want.