Dollar-Based Investing Primer Coalinga CA

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

Milo Benningfield
Benningfield Financial Advisors
(415) 561-6688
Presidio of San Francisco
San Francisco, CA
Expertises
Helping Clients Identify & Achieve Goals, Ongoing Investment Management, Retirement Planning & Distribution Rules, Estate & Generational Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®, JD

Michael Garber
Michael Garber Financial Planning
(408) 846-2977
605 Tennant Avenue, Suite I
Morgan Hill, CA
Expertises
Cash Flow/Budgets/Credit Issues, Middle Income Client Needs, Hourly Financial Planning Services, Helping Clients Identify & Achieve Goals, Investment Advice without Ongoing Management, Advising Employee Benefit Plan Participants
Certifications
NAPFA Registered Financial Advisor, BSEE, CFP®, MSEE

Brian Pon
Financial Connections Group, Inc.
(415) 924-1091
21 Tamal Vista Blvd. #105
Corte Madera, CA
Expertises
Ongoing Investment Management, Retirement Planning & Distribution Rules, Retirement Plan Investment Advice, Socially Responsible Investments, Tax Planning, Planning Issues for Unmarried & Same-Sex Couples
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, EA, PFP

Ann Terranova
Union Financial Partners, Inc.
(415) 563-3000
2001 Union Street, Suite 540
San Francisco, CA
Expertises
Retirement Plan Investment Advice, Planning Issues for Business Owners, Retirement Planning & Distribution Rules, Professional Athletes or Entertainers, Financial Issues Between Generations, Advising Entrepreneurs
Certifications
NAPFA Registered Financial Advisor, CFP®

Gary Smith
Pleasanton Financial Advisors, LLC
(925) 846-3768
1811 Santa Rita Road, Suite 211
Pleasanton, CA
Expertises
Helping Clients Identify & Achieve Goals, Middle Income Client Needs, Ongoing Investment Management, Investment Advice without Ongoing Management
Certifications
NAPFA Registered Financial Advisor, CFP®, PhD

Tina Anders
Anders Financial Planning
(707) 765-9025
7 Fourth Street, Suite 66
Petaluma, CA
Expertises
Ongoing Investment Management, Socially Responsible Investments, Women's Financial Planning Issues
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

Ann Fleming
Fleming Financial Advising
(925) 287-9448
1801 N. California Blvd., Suite 101
Walnut Creek, CA
Expertises
Helping Clients Identify & Achieve Goals, Middle Income Client Needs, Ongoing Investment Management, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, CFP®, MS

Mary Lacey Gibson, CFP
Mary Lacey Gibson, CFP
(831) 623-2126
383 Olympia
San Juan Bautista, CA
Expertises
Newlyweds & Novice Investors, Helping Clients Identify & Achieve Goals, Middle Income Client Needs, Hourly Financial Planning Services, Retirement Planning & Distribution Rules, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®

Glenn Woody
Glenn Woody Financial Consultants, Inc.
(760) 771-3734
55-365 Riviera
La Quinta, CA
Expertises
Ongoing Investment Management, Helping Clients Identify & Achieve Goals, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, BA, CFP®

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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