Week 24 - 401K Balance as of June 15.

Week 24 - 401K Balance as of June 15.

Summary:

• 93K as of June 15.
• 5K gain in the last 15 days (since the last update).
• 401K up 13% YTD (From Jan 1 to June 15).

Tracking and Posting of data on Social media show how accounts can grow. There is an example of Dollar Cost Averaging working. Last year, in 2022 the PEAK account value with 79K! For several months in 2022, the account value was worth less than its peak value, even after contributing new CASH into the 401K plan.

This happens when the portfolio moves downward greater than the amount of cash added into the account. For Example: If you were adding $100 per pay period and your account was losing $200 because the market was moving downward (RED MARKETS).

The second thing to consider is how DCA (Dollar Cost Averaging) helps. When markets are going down, it is hard to want to invest. But the 401K plan is perfect for this because you invest each time you get a paycheck. The paycheck will come in over the next 20-30 years of work!

The next thing is most of us don't have CASH to buy the "600" shares up FRONT! So many of us are starting at zero. Dollar Cost Averaging still works when you are age 25 or age 55.

DCA - also solves the issue of emotions or trying to time the market. One of the best ways to invest is to buy assets over 20 years. This has been proven to work with Stock Market (especially in the US). If you use this concept with BITCOIN, you would have been buying when it was at 18K in 2017 or at 50K in 2022. At the same time, you would have purchased when it fell from its ATH and you had 3 years of fire sale prices. The last ATH was 68K. Since then it down below 16K and currently it is at 26K.

Do you Buy, Sell, or Hold bitcoin? I using the same method as I do with my 401K plan. I don't know what the right price is, but I DCA into an asset using a SMALL amount over a long period of time.

This is not financial advice. What I'm doing might not be suitable for you. Make sure you understand the risk and don't listen to random strangers on the internet.

Having a profitable day,
Solving-Chaos