Discussion

Joseph from New York posted over 3 years ago:

The Value Averaging Spreadsheet appears to be what I needed, so I downloaded it. I want to value average into a mutual fund over the next 20+ months. The initial investment was $3000 dollars and subsequent investments are set at the fund's $1000 minimum investment. Because the NAV of the fund is high, this months amount to invest calls for a dollar amount of $125.00; since this month's amount to invest is well below the $1000 minimum the fund requires how do I handle this? Do I ignore the spreadsheet's amounts to invest that are below the funds minimum or do I just forget using this spreadsheet?


Dave from Washington posted over 2 years ago:

Joseph,
To make this spreadsheet work with a mutual fund investment that has a high minimum like $1000, I would suggest that you set "Dollar amount to increase" in cell A6 to at least 2 times the min. investment or in your case $2000. Though with value investing you can not predict how long it will take to become "fully invested" in your case you could increase the investment interval to one and a half months instead of the original one month. When you get numbers that are less than $1000, I would suggest if the number is > than $500 then go ahead and invest $1000. If less than $500 then invest zero for that time frame.


Dave from Washington posted over 2 years ago:

One problem with this spreadsheet is that if you add anything to column D, it will tend to overstate your IRR calculation. To correct this you would need to add a column to capture the purchase price of the acquired shares and add that to the calculation of the "periodic investment" in column K.


john from Ohio posted about 1 year ago:

the spreadsheet works for small amount of investments. How can I use the spreadsheet if say my starting investment was $200,000 and I wanted to invest $2000 a month using a total stock market index fund as an investment vehicle? Should I define my expected portfolio value as an addition of $2000/month i.e 202000,204000,206000..... or should I use a certain expected rate of annual return say 6% or the historical stock market return of 9% ?


Zachariah Tripp from New Hampshire posted about 1 year ago:

I have been value averaging in my 401k for some time. I have my direct deposits go into the money market and even month I move to correct amount to the funds based on my value path. Last month (Jan-2013) I took profits in 3 of 5 funds. Felt good to have a plan and know when the value is above average so I can take profits and buy more when the return is below average.

John from Ohio, If I was you, I would make you own spreadsheet, it is not too difficult. Find the average monthly return of the fund in question and put together a excel file by month with that return and your monthly addition, that will be your path. Make installations accordingly.

If you want some help, post an email address here.


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