Dollar-Based Investing Primer Coalinga CA

A primer on how dollar-based averaging can work for you as an investment strategy.

Michael Chamberlain
Chamberlain Financial Planning LLC
(831) 423-1340
100 Doyle Street, Suite D
Santa Cruz, CA
Expertises
Hourly Financial Planning Services, Ongoing Investment Management, Middle Income Client Needs, Insurance Related Issues, including Annuities, Newlyweds & Novice Investors, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, AIF, CFP®

Stephan Goyette
Goyette Financial Planning
(805) 494-8181
25 W Rolling Oaks Drive, Suite 111
Thousand Oaks, CA
Expertises
Ongoing Investment Management, Middle Income Client Needs, Retirement Planning & Distribution Rules, Tax Planning
Certifications
NAPFA Registered Financial Advisor, CFP®

Joseph Alfonso
Aegis Financial Advisory
(408) 689-8211
3333 Bowers Avenue, Suite 130
Santa Clara, CA
Expertises
Helping Clients Identify & Achieve Goals, Tax Planning, Ongoing Investment Management, Advising Employee Benefit Plan Participants, Estate & Generational Planning Issues, Middle Income Client Needs
Certifications
NAPFA Registered Financial Advisor, BA, CFP®, ChFc, EA

Heena Shah
Lighthouse Financial Services, Inc.
(714) 572-8900
3000 East Birch, Suite 107
Brea, CA
Expertises
Retirement Planning & Distribution Rules, Cash Flow/Budgets/Credit Issues, Tax Planning, Ongoing Investment Management, Estate & Generational Planning Issues, Charitable Giving - Trusts & Foundations
Certifications
NAPFA Registered Financial Advisor, CFP®

Charles Hayes
Hayes & Associates, CPAs
(619) 435-4195
1001 B Avenue, Suite 211
Coronado, CA
Expertises
Ongoing Investment Management, Charitable Giving - Trusts & Foundations, Estate & Generational Planning Issues, College/Education Planning, Tax Planning, Helping Clients Identify & Achieve Goals
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, CPA, CPA/PFS

Chuck Rylant
C.J. Rylant Wealth Management
(805) 722-2942
1011 Susan Place
Santa Maria, CA
Expertises
Middle Income Client Needs, Tax Planning, Cash Flow/Budgets/Credit Issues, Planning Issues for Business Owners, Ongoing Investment Management, Retirement Plan Investment Advice
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, CTEC, MBA

Sandra Field
Asset Planning Inc.
(714) 827-5794
10833 Valley View St., Suite 470
Cypress, CA
Expertises
Ongoing Investment Management, Helping Clients Identify & Achieve Goals, Hourly Financial Planning Services, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA

Jeffrey Harwood
Ventura Advisors
(818) 857-5080
21860 Burbank Blvd., Suite 100
Woodland Hills, CA
Expertises
Retirement Plan Investment Advice, Ongoing Investment Management, Charitable Giving - Trusts & Foundations, High Net Worth Client Needs, Real Estate Investments, Special Needs Planning
Certifications
NAPFA Registered Financial Advisor, CFA, CFP®, MBA

Todd Ganos
Doolittle & Ganos Investment Counsel, LLC
(831) 624-3317
P.O. Box 221610
Carmel, CA
Expertises
Advising Entrepreneurs, Planning Issues for Business Owners, High Net Worth Client Needs, Planning Concerns for Corporate Executives, Estate & Generational Planning Issues, Tax Planning
Certifications
NAPFA Registered Financial Advisor, CFP®, JD, LLM

Walter Romatowski
Castellan Financial Advisors
(916) 663-6338
919 Reserve Dr., Suite 105
Roseville, CA
Expertises
Hourly Financial Planning Services, Ongoing Investment Management, Helping Clients Identify & Achieve Goals, Middle Income Client Needs, Cash Flow/Budgets/Credit Issues, Retirement Plan Investment Advice
Certifications
NAPFA Registered Financial Advisor, CFP®, CMA, MBA

Dollar-Based Investing Primer

Provided by:

Most stocks cost odd amounts: $3.25, $18.63, or $101.88. Traditionally, you invest by buying a whole number of shares, and the cost is the number you buy multiplied by the price.

"Dollar-based" investing is different: it means buying stocks or other investments in a dollar amount you choose, instead of in multiples of the stock price. Let's say you decide to invest $50 or $200 a month; your investment doesn't normally buy an exact whole number of shares. It's a great idea for the ordinary investor who wants to put away consistent amounts for the long term.

To see how the two systems work, put yourself in the handcrafted shoes of a wealthy imaginary relative, Mr. Buck.

Let's say Mr. Buck is worth $10 million. Perhaps he employs a professional broker, or perhaps he does all his own investing through an online brokerage account. In any case, his typical investing experience might look something like this.

"Say. That bond I'd forgotten all about has just matured. Suddenly I have $10,000 sitting in my checking account, and I really should invest it in something. Hmmm. I notice that shares in Global Widget have declined recently. But I'm confident the price will recover, and then some. Let's see... at today's share price of $126.99, that $10,000 will get me 78 shares."

With a call or a click, it's done. Mr. Buck now owns 78 shares in Global Widget. The transaction even leaves enough loose change for lunch at an expensive restaurant - if we ignore the $200 or so in commission that his personal broker may have just pocketed....


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