Index

American Association of Individual Investors, 25

Annuities, 6063

Approximate growth-adjusted DCA formula, 74

Arithmetic mean, 2223

Asset allocation strategies, 2

Beta, 23, 174, 180, 181, 190

Black Monday, 151

Bonds, 14, 15, 70, 192

Buy-and-hold strategy, 20, 37

Capital gains tax

cap, 114

deferring, 101107, 178

Closed-end mutual funds, 188

Compounding, 7, 2223, 58, 80

Constant-ratio plans, 2

Constant share (CS) purchase strategy, 28, 3036, 3738, 48, 52, 127, 162164, 168

Contrarian strategies, 144, 147

Corporate bonds, 14, 15

Correlation coefficient, 190

Deferred gains, 101102

example of, 102103, 106107

Distribution

of eight-year stock returns, 13

of four-year stock returns, 12

of market returns, 913

of one-year stock returns, 11, 18

of random stock returns, 124, 125

standard normal, 17

Diversification, 9, 34, 169170, 174, 175, 190

time, 8, 32, 3738

Dodge & Cox Stock Fund, 175

Dollar cost averaging (DCA), 2526, 3637

definition of, 12, 25

example of, 2628, 49, 202214

fixed amount, 3536, 63

growth-adjusted, 7180

growth equalization of, 3536, 56

internal rate of return, 28, 29

investment

frequencies, 163, 164, 166167, 179180

return and taxes, 200202

targets, 5763, 88, 199200

long-term problems with, 3436, 71

over five-year periods, 3234, 49

over one-year periods, 3032

readjustment of, 6371, 205213

spreadsheet for, 8385

short-term performance of, 28

table, 27, 31, 33, 142

versus VA, 5556, 168

Donnelly, Barbara, 150

Down-shifting risk, 6971

Effective ...

Get Value Averaging: The Safe and Easy Strategy for Higher Investment Returns now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.