Richard cayne Japan - Dollar Cost Averaging

DOLLAR COST AVERAGING Example One: Averaging in an Increasing Market Unit Price $16.00 $15.00 $14.00 $13 00 $12 00 $11.00 $10.00 1 2 3 4 5 6 7 8 10 11 12 Units Purchased 100 100 95 95 90 90 86 85 83 80 76 75 70! 65 60 1 2 3 4 5 6 7 8 9 10 11 12 In vest $1000 a month for 1 year Units Purchased: 953 To tal Cost: $12,000 Market Value: $14,771.50 $ Growth: $2,771.50 % Growth: 23% Example Two: Averaging in a Down and then Up Market Unit Price $10.00 $9.00 $8.00 $7.00 $6.00 1 2 3 4 5 6 8 10 11 12 Units Purchased 145, 142 133 133 135 125 125 125 117 117 115 111 111 105 105 105 100 95 1 2 3 4 5 6 7 8 9 10 11 12 Invest $1000 a month for 1 year Units Purchased: 1,424 To tal Cost: Market Value: $13,528 $ Growth: $1,528 % Growth: $12,000 13% (despite the final purchase price being lower than the original pur chase price) Example Three: Averaging in an Fluctuating Market Unit Price $16.00 $15.00 $14.00 $13 00 $12 00 $11.00 $10.00 $9.00 1 2 3 4 5 6 7 8 9 10 11 12 Units Purchased 105 105 100 100 95 95 90 90! 86 85! 83 80 80! 76 74 75! 70! 65 60l 1 2 4 5 7 8 9 10 11 12 Invest $1000 a month for 1 year Units Purchased: 990 Total Cost: $12,000 Market Value: $15,435.50 $ Growth: $3,345.00 % Growth: 28%