Dollar-Based Investing Primer Coalinga CA

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

Theodore Roman
Roman Financial Advisors
(619) 669-1111
2245 San Diego Avenue, Suite 221
San Diego, CA
Expertises
Real Estate Investments, Retirement Planning & Distribution Rules, Tax Planning, Helping Clients Identify & Achieve Goals, Retirement Plan Investment Advice, Planning Issues for Business Owners
Certifications
NAPFA Registered Financial Advisor, BS, CFP®, EA

Steven Bell
The Wealth Conservatory
(800) 472-1844
1751 Barcelona St. Bldg B
Livermore, CA
Expertises
Helping Clients Identify & Achieve Goals, High Net Worth Client Needs, Ongoing Investment Management, Retirement Planning & Distribution Rules, College/Education Planning, Estate & Generational Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA

Mark Rylance
RS Crum Inc.
(949) 428-9696
4 Upper Newport Plaza Drive, Suite 201
Newport Beach, CA
Expertises
Real Estate Investments, Ongoing Investment Management, High Net Worth Client Needs, Divorce Planning, Planning Issues for Business Owners, Advising Medical Professionals
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

Angela Grillo
South County Financial Planning, LLC
(949) 240-6125
28202 Cabot Road, Suite 300
Laguna Niguel, CA
Expertises
Hourly Financial Planning Services, College/Education Planning, Special Needs Planning, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, AIF, CFP®

Donald Hance
Glenmore Financial, Inc.
(310) 230-2318
17373 Sunset Blvd., Suite A450
Pacific Palisades, CA
Expertises
Middle Income Client Needs, Tax Planning, Retirement Plan Investment Advice
Certifications
NAPFA Registered Financial Advisor, CFP®, EA, MBA

John Wenzel
Watermark Asset Management, Inc.
(925) 648-4730
2010 Crow Canyon Place
San Ramon, CA
Expertises
Estate & Generational Planning Issues, Middle Income Client Needs, Helping Clients Identify & Achieve Goals, Ongoing Investment Management, Newlyweds & Novice Investors, Tax Planning
Certifications
NAPFA Registered Financial Advisor, BS, CFP®

William Duff
Duff Financial Advisory Services
(626) 301-9266
106 W. Lime Avenue, Suite 200B
Monrovia, CA
Expertises
Ongoing Investment Management, Retirement Planning & Distribution Rules, Tax Planning, Hourly Financial Planning Services
Certifications
NAPFA Registered Financial Advisor, BA, CFP®, MBA

Robert Eddy
Creative Capital Management, Inc.
(619) 298-3993
8880 Rio San Diego Drive, Suite 1150
San Diego, CA
Expertises
Planning Issues for Business Owners, Ongoing Investment Management, Estate & Generational Planning Issues, Retirement Planning & Distribution Rules, Cash Flow/Budgets/Credit Issues, Newlyweds & Novice Investors
Certifications
NAPFA Registered Financial Advisor, CFP®, EA

Sara Ellefsen
Golden Gate Personal Financial Planning LLC
(415) 344-0549
703 Market Street, Suite 614
San Francisco, CA
Expertises
Ongoing Investment Management, Cash Flow/Budgets/Credit Issues, Planning Issues for Unmarried & Same-Sex Couples, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®, 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....


Click here to read the rest of the article at YoungMoney.com.