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Originally Posted by smpl
You're wrong. The downside in equities (and bonds, and property) is far outweighed by the upside in commodities and inflation.
"000 dollars in each, then set up automatic payments to add 200 dollars to each at the end of every month. Think there around Twenty of them so after a year"
Even in your strategy, you are effectively buying equities at all time highs in a one off payment.
Morningstar Australia recently had a feature to the effect that dollar-cost-averaging was a worse idea than one-off purchases
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Originally Posted by GTM 3442
Morningstar Australia recently had a feature to the effect that dollar-cost-averaging was a worse idea than one-off purchases
in a rising market, a one off is better. In a falling market, dollar cost averaging is better but not as good as waiting till it is going up again.
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Member
I do not disagree that dollar-cost-averaging in the best passive strategy. I use Kiwisaver for this reason: $20.83 every week into MSCI AC, 50% unhedged (3 reasons: govt incentive, international equities, limit NZD exposure). If Smartshares had the right products I would use them. There is still plenty of opportunity in the Kiwisaver product development space.
However I maintain that for a person who wants to make money, ie people on this forum, timing IS everything.
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Originally Posted by Harvey Specter
in a rising market, a one off is better. In a falling market, dollar cost averaging is better but not as good as waiting till it is going up again.
Originally Posted by smpl
I do not disagree that dollar-cost-averaging in the best passive strategy.
I dont think dollar cost averaging was ever 'designed' to invest a lump sum. If you are saving (say) $100 a month, DCA says that it is best to drip that into the market rather than wait to time the market.
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Member
Originally Posted by Harvey Specter
If you are saving (say) $100 a month, DCA says that it is best to drip that into the market rather than wait to time the market.
Which comes back to one benefit of Smartshares which is the regular savings plan, which allows drip feeding monthly and there are no transaction costs involved. People tend to forget about this when bagging Smartshares as being too expensive
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Originally Posted by heisenberg
Which comes back to one benefit of Smartshares which is the regular savings plan, which allows drip feeding monthly and there are no transaction costs involved. People tend to forget about this when bagging Smartshares as being too expensive
Completely agree. For someone wanting a simple low cost investment they can drip fee money into from their salary, it is good. More expensive than if you were in the US but cheap compared to the other NZ alternatives.
The question raised here (supplementary question I guess) is at what point does Smartshares get expensive and it best to go direct.
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Member
Originally Posted by Harvey Specter
The question raised here (supplementary question I guess) is at what point does Smartshares get expensive and it best to go direct.
As you've mentioned earlier re: the Mary Holm article, I'd consider looking elsewhere once over the 100k mark (depending on performance)
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Junior Member
i cant believe the bubble is still going.
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Last year or so have been putting money into the european ETF (EUF) Prices are not as inflated as for some other regions. Also a lesser amount into the Total world fund. Basically want more of my money away from NZ
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Junior Member
Hi, would any investor want to share their thoughts on how they would split the $100k (original question) amongst Smartshares ETFs for long term growth?
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