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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: Kirk © who wrote (41583)	12/24/2008 2:00:00 PM
From: Math Junkie	4 Recommendations Respond to of 42834

"BTW, why not answer my question?" I already told you why, but if you need it spelled out, it's because it's irrelevant. However, if YOU think it's so important, I will answer. Here was the question: "If Brinker said to Lump Sum into the market rather than DCA, would you then go out and get a loan to cover the next year's IRA investments or would nothing change and you would continue to make regular lump sum investments into the market as soon as you got the money?" My answer is that no, I would not go out and borrow money in the scenario you posed. I don't agree that this proves DCA is not equivalent to regular 401(k) contributions. The reason is that neither DCA nor regular 401(k) contributions involve making interest payments on borrowed money, and neither has as much risk as going out and borrowing money to put in the stock market. As I'm sure you've noticed, market timers' calls cannot be considered money in the bank. "Are you afraid an honest answer will show the scam for what it is, a way to make Brinker being fully invested at the top look better?" I don't agree that calling regular 401(k) contributions a form of DCA makes Brinker's timing look better. "Dija was honest and said I was 'technically right' which is pretty good honestly." I don't care about technicalities. I care about the essential truth of the matter, and that requires considering the effects of various strategies. You seem to have this notion that no one could possibly disagree with you without being dishonest. You ought to take a look at whether that attitude truly serves yourself or your customers.