Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: BGR who wrote (77191)	3/8/2000 12:45:00 AM
From: Skeeter Bug	Read Replies (1) \| Respond to of 132070

>>I plan to DCA for the next 34 years.<< if you have a job -ng-

To: BGR who wrote (77191)	3/9/2000 1:59:00 AM
From: Simba	Read Replies (1) \| Respond to of 132070

BGR: Your numbers don't seem to compute. Let us see. You have said you plan to DCA for the next 34 years. You have said that you come from India. Assuming you plan to DCA up to age 64 that would mean you are around 30 years of age now. That would probably mean you have DCA for probably 5-6 years now assuming you started work after graduate studies here. Last 5 years you have SP500 going from about 500 to a peak of about 1450. Let us shave of 60% of 1450. That gets us to a value on SP500 of 580. Even if you invested all your money at 500, 5 years back you would have a total return of only 16 % in 5 years. Since you DCA'd your return should be much less, so can you tell us how you arrive at a 29 % return average annual return if SP500 falls 60% from its peak. Or have you been DCA'ing for a much longer time, say 10 years. Even assuming 10 years, the start value for SP500 is 330, that gives you (580-330)*100/330 = 75% in 10 years, clearly not 29% per year. Simba