Talk:Dollar value averaging

A few notes on areas that could use further development:

-a background section that explores some of the research on DVA might be helpful in explaining why some people choose to go to the extra trouble of following DVA rather than DCA. A brief overview of Edelson and Marshall would be sufficient.--User:Mcbar 10:50, 18 December 2013

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Accumulation Phase

I added an example of using DVA during the accumulation phase. Please edit vigorously for style and substance! I use the following formulas for my own portfolio and I think they're slightly less unweildy than the formula given on the bogleheads wiki. This is by no means the "right" way to do it, but might be more accesible for a beginner. If I can find a way to tidy it up I'll add it.

1)starting value*(1+expected return)+expected contribution=expected value

2)expected value-actual value=actual contribution (sell if negative)

3)expected value becomes starting value for next interval --Mcbar 12:37, 23 December 2013 (MST)

A hypothetical graph and table comparing DCA and DVA might be helpful for illustrative purposes. I would also like to expand the existing text to include information about maintaining target asset allocation while using DVA. More detail regarding the cash allocation might also be helpful, stressing the importance of liquidity, maybe discussing cash as a potential drag on returns vs DCA. --Mcbar 16:25, 23 December 2013 (MST)

Withdrawal Phase

This area could use additional detail and perhaps an example similar to that used for the accumulation phase --Mcbar 16:25, 23 December 2013 (MST)