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Timing Buy & Hold
diasurfer 08-16-2006, 1:39 PM | Post #181441 | 
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Greetings Diehards,
I am a fairly new investor and appreciate the advice I have gleaned from these boards over the past few months. I'm 38 and about 85% in VG equities and 15% in bonds. Those numbers apply to my current 401k, a past 401k, and an IRA.

I make the maximum annual contributions to my 401k and ROTH IRA. With any leftover, I contribute to my individual account. (I'm a renter b/c I live in Honolulu and the median house price is $650K). My ROTH and individual accts. both hold the STAR fund.

I understand the amateurs and inexperienced should buy & hold and avoid trying to time the market. Here is my question though. Is it preferable to set up a AIP in which my ROTH and Ind. Acct. contributions are always made the same day of the month, or should I try to time my monthly purchase? The idea is that I'm not selling, and if 2 or 3 weeks pass before a down tick comes along, I just buy. For example, after this weeks rally, I might wait a few days with my monthly contribution to see if it rebounds. Essentially, I am trying to always buy on the low side of the daily/weekly noise to the monthly/annual trend. Of course, it is not easy to do this (no crystal ball), but are my chances any worse off than an AIP where I have a 50/50 chance of buying high or low? The only cost I see is that I spend time watching the market on what may be ultimately a futile effort when I could just spend my time doing something else with an AIP. But perhaps in the long run I can squeeze an extra percent or so out of my returns?

Thanks for any input.
John

Originally posted in thread: 52577
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