Reverse Dollar Cost Averaging.
Get more than the average price when periodically selling securities
for IRA or 401K retirement plan withdrawals.
Are
you making periodic sales of stocks, funds or commodities that
vary in price? If you are selling a constant dollar amount each
period, you are losing everything that Dollar Cost Averaging
gained when buying.
SACOUT® (Patent
#7,003,483) is an inexpensive software tool that automatically
tells you to sell more shares when the price is high and fewer
when the price is low. In effect, it gives you the same benefit
when selling that Dollar Cost Averaging does when buying. This
is how it works:
The
benefit of Dollar Cost Averaging to purchase shares of a
product that varies in price is well known. When you invest a
constant dollar amount periodically, the number of shares purchased
each period is the dollar amount divided by the current share
price. When the price is low, more shares are purchased.
When the price is high, fewer shares are purchased. The result
is that the average cost of shares purchased is less than the
average price of shares over the investment period.
When it comes time to make periodic withdrawals
either to supplement other retirement income or to meet IRS required
withdrawals, there is no equivalent to DCA. Traditionally, an
equal amount is withdrawn each period, for example monthly. Now
you are on the wrong end of dollar cost averaging. The buyer
is paying less than the average cost over the withdrawal period,
so you are selling for less than the average price.
The SACOUT® (Securities Average Cost OUT) method
(patent #7,003,483) functions automatically, just like DCA, to
sell for more than the average price over time.
SACIN®,
provided along with SACOUT®, is an improved
Dollar Cost Averaging method. It automatically purchases
more shares than Dollar Cost Averaging when the share price
decreases and fewer shares when the price is high.
Sacco Company, Inc.
323 Bittersweet Circle
Williston, VT 05495
802-288-9176
E-mail:
© Copyright
2007, Sacco Company, Inc. All Rights Reserved.
The technology underlying SACIN® and
SACOUT® is
protected under U.S. Patent #7,003,483.
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