Kevin O'Leary Explains Compound Interest With A Piggy Bank

Here is the link.

I like to use my own example, I sold VIGRX mutual fund in 2002 after I lost high pay full time startup software company, $3000 dollars in 2001 and took the loss to sell $1900. Later on in 2002, I bought a super expensive SONY laptop $1800.00.

I like to use the words from Kevin O Leary, I bought something I do not need, and I kill it. In 2019, those VIGRX worths over $10,000 US dollars.

If I used those $1800 dollars to hold VIGRX fund, I sold VIGRX in 2002 as loss in February 2002 as a home maker, $1900, now the value of VIGRX worths over $10,000 dollars.

Case study: 2001 IRA and stock purchase VIGRX fund

January 1, 2019

Introduction

It is my personal finance research. I spent time to review my files and then I found two documents related to my stock and mutual fund purchase. I like to do a case study on them.

Case study

Life is so challenge and I also like to share my limited experience. I am a single person and I do not know what the single means. In terms of personal finance decision, I like to write down my decision making mistakes and share with others.

My problem is to buy high and sell low. I do not understand time is on my side. I was so young back in 2002. I have over at least 30 years to benefit the growth of economy, what should I worry about?

I like to do a case study on a mutual fund VIGRX.

Here is the folder containing my purchase detail in my personal finance folder. I had Atlantic Entertainment 401 K rollover in 2001. Here is my 401 K statement at the end of 2010.

                                                                          Share      Price         Action
2001 Dec 10, 2001 Fidelity advisor equity            158.915   $25.90     Bought

I sold the mutual function Fidelity advisor equity in 2012 with loss over $1000 US dollars.

My analysis

I sold mutual fund in 2002. I totally forgot the fund after Feb. 27, 2002. I did not have job from 2001 September to August 2002, I was a home maker. I need to do research how to be a good home maker.

Today on January 1, 2019. Fidelity advisor equity has price $69.10. If I took the loss in Feb. 27, 2002, and do nothing, my original $3000 dollar fund will worth more than $10981.00, without considering dividends.

Price review

VIGRX fund - from Vanguard website - January 1, 2019

Performance review

VIGRX mutual fund - January 1, 2019

Actionable Items

In order to solve my house problem in the city of Vancouver, I decided to work on my personal finance research. I like to figure out what decision making process I have and how I can make improvements.

In year 2000, I have a good friend from FAU shared me with the tip to buy growth index fund, so I had no idea what to do, I decided to purchase four funds instead. Growth index fund minimum $3000 dollar, other three funds $1000, $500, $500.

When the fund price went down, I really did not understand what the problem was. I just sold it and took the loss. After that, I did not review and try to purchase back to cover the loss in 2002. If I understand the growth index fund long term is up, then I will get back and keep last 18 years.

I like to call my finance lesson worth over $7000 US dollar, 18 years time. Personal finance No. 2, growth index fund, $7000 at least loss.

My learning and decision making has flaws. I listened to my friend's advice, I decided to open IRA stock account, I did purchase. I did not spend time to review my every piece of transaction, and also analyze what I should learn from the transaction.

I have to push myself to learn decision making. Go for one case a time, and go over to review my choice. What is the problem? How to recover? Should I go back to purchase again?

Since I am a single person, I choose not to share my struggle and is shamed about my wrong judgement. Today I like to share and push myself to learn from the mistake, and be a good manager of my money.

I have to push myself to be gentle, and kind. Document every purchase, and do not try to kill wealth from a seed. Specially when I took loss, it was pain. But that is the chance I can really grow. I have to believe in USA, USA economy, and try to think about how hard Facebook, Amazon and Facebook to recruit best problem solvers to work for them. People with best education, reasoning, and family support, there is no way the whole economy will stay down.

One of ideas is to purchase VIGRX mutual fund in 2010 instead of closing the account for investment and IRA. If I purchase growth index fund at lowest point of last 15 years, in 2010. If I put another $3000 dollars, or $6000 dollars, then I will have very successful story to share after 18 years.

Follow up 

April 22, 2020

Based on my research, MSFT stock ten times more from 2010 to 2019. So if I hold MSFT 10 shares stock purchased back in 2001, then the value of stock 660 US dollars will be worth more than $6600 dollars.

Case study: March Florida vacation

Feb. 16, 2019

Introduction

It is my personal finance research. I was too busy to work on personal finance research, I do not even have time to work on algorithm and data structure practice starting from Nov. 2018. Also I was too busy to work on the projects at work. I like to figure out if I can plan a vacation to Florida in March.

Case study

I like to plan to take a vacation to Florida. I like to watch Miami open tennis, and enjoy a few days break.

I need to plan a few things. I need to find cheap airline tickets, I need to plan to clean the rental home, special kitchen area. I need to work on a few other things as well.

I need to empty some space, take my clothing back to Florida. This time I know that I spent over $6,000 dollars on clothing and other things. It is not wise to throw them in garbage can. I like to take them back to Vancouver first. Specially my SONY laptop I paid over $1800 US dollar in 2002 Sept, and I brought the laptop with me the first day intern at Motorola plantation.

If I used those $1800 dollars to hold VIGRX fund, I sold VIGRX in 2002 as loss in February 2002 as a home make, $1900, now the value of VIGRX worths over $10,000 dollars.

Be a wise woman

I like to be a wise woman. One idea is to save money. It may not be a good idea to travel long distance to Florida.

Count the hours for my personal finance research

Jan. 18, 2019

Introduction

It is my personal finance research. I learn the mistake I made to sell VIGRX mutual fund in 2002, I sold it when it was low price. It was more than 17 years ago. I did not take time to learn how index fund works. Later I played on stock market, and never considered VIGRX mutual fund again. I like to be patient to myself, count hours to study personal finance first. If I did not sell it in 2002, then the fund will have market value $10,000, with $7,000 dollars gain.

100 hours mark

Knowledge is power. I should start to learn basics first.

I spent 4 weekends in November, 4 weekends in December, and also one week holiday break to study.

Total hour:
  8 * weekends (10 hours a day)
  5 week days ( 10 hours a day)
---------------------------------------
130 hours

200 hours mark

300 hours mark

400 hours mark

500 hours mark

Actionable Items

I do not save my VIGRX statements in 2001. I should parent myself and give myself warning since only thing I care about is to make profit, but I do not give myself chance to learn. One thing is to learn from my own mistake, my own experience. In order for me to do that, I have to save those finance records, so I can easily review all the transactions and learn from the mistakes.

This is basic personal financial habit. I should learn to build a good habit at the very beginning.

First investment mistake - VIGRX can be over $10,000 dollars

Feb. 24, 2020

Introduction

I did case study on my short investment from 2001 to 2002 on VIGRX, and the loss is over $10,000 dollars from my viewpoint in 2020. I like to be a millionaire, so it is so easy for me to figure out those investment mistakes from my 2001 portfolio, all those holdings I sold them in less than a few year, a few of them are over $5,000 dollars loss.

Case study

Here is my blogs related to VIGRX mutual fund.

My top three biggest mistakes in personal finance

January 1, 2019

Introduction

I am so glad to celebrate new year's day to stay at home to work on my personal finance. I find my third biggest loss in my personal finance from 2001 to 2019. This one is the decision I made from 2000 in purchase and 2002 in sell. VIGRX mutual fund in my IRA stock account back in Florida, USA. I could not believe that my achievement of new year's day in 2019. I like to write a blog called top three biggest mistakes in my personal finance.

My top three biggest loss

No.1 mistake is the one I found in new year's day 2019.

Top one mistake is VIGRX mutual fund purchase and sold in 2002. I did not understand growth index fund, recession, time is on my side a few concepts. I was too young and did not learn to document my finance decision and review them in December holiday season as a single person, I did this first time starting from Nov. 2018.

I documented the loss using a case study. Here is the link.

No. 2 is my SONY laptop purchase in 2002. I found the receipt in Nov. 2017, I was so shocked to find out how much I paid. I totally forgot the price I paid, the good quality of product, I still made two more laptop purchase from 2002 to 2010. I left the laptop to my friend's house in 2010 when I left Florida. I did not take it back in 2014. I need to get it back and enjoy the good quality of a laptop, it should be good for me to write some C# algorithm and practice.

How to Get RICH | Unshakeable by Tony Robbins | 10 BEST Ideas | Book Summary

Here is the link.

Wealth tax - 20%

Compounding

10,000 year, put into 5% interest 30 years; if interest goes to investment continuously, then
it will be $33,219.
10,000 year, put into 5% interest 30 years; all interests are taken out, then the value will be $15,000.

Julia's worksheet:
(1 + 0.05)^30 = 4.32194
0.05 * 30 = 1.5


Fear and chicken little

6:22/ 15:56
Stay the course - that is mantra to manage other people's money.

7:00/ 15:56
You cannot time the market. Stay in the market.

Big idea six
"If you do not plan to own the stock over 10 years. Do not plan to own 10 minutes."


Diversify four times

1. Asset class
2. Within asset class
3. Country
4. Stage of life

12:00
Last idea
Resource and technology

Relate to my experience

2001 purchase $3,000 dollar fund VIGRX, sold in 2002 with value $1,900

It is buy low and sell high. I sold $1,900 dollars with over $1000 dollar loss. I purchased in 2001 $3000 US dollar VIGRX fund.

2008 worst stock market crash -

I lost over $5,000 dollars and then I pulled out everything.
I lost over $3000 dollars on Par Siva 401K, and then I chose to purchase money market fund instead.

Case study: 2009 credit report

February 2, 2019

Introduction

It is my personal finance research. I spent time to review my IRA CD performance from 1999 to 2019, and then I came cross my 2009 credit report paper copy. I searched the hard disk but I could not find the electronic copy. I like to case study the credit report.

Case study

I am very happy to retrieve my home equity line balance from 2007 Dec. to 2009 October. I like to look into the decision making behind those transactions behind the home equity line.

I did withdraw $30,000 US dollars from home equity line after I left full time software job from one year full time job as a software programmer in Oct. 2007.

Best buy/ HSBC
opened on 04/2002, high balance $1964.00 for SONY laptop I purchased.

Home depot/ citibank

Date opened
07/2003
high balance
$3590

I put tiles on the floor and paid home depot to hire the contractor in 2003.

Actionable Items

I like to push myself learn personal finance. One idea is to look into those financial data, and learn from the experience. What mistakes I have made in those years.

One of ideas to lower the risk and cost reduction is to purchase used car, and cheap laptop, and carefully monitor the expenses. I should pay attention to mini leaks and major leaks in terms of annual report, decade report.

I also have to learn how to be an intelligent person, avoid emotional decision making; I should always consider alternative cheap ways to solve problems. I should not pay any expensive service from any one in the world. I just use common sense and take some risk to evaluate the situation by myself.

Big mistake in 2002

I found out in Feb. 2019 I sold VIGRX fund in Feb. 2002 with loss $1900, originally I bought $3000.00 dollars in 2001; later in Oct. 2002, I purchased most expensive laptop in my life, SONY.

If I hold the fund VIGRX, then it is worth $10,000 US dollars.

I remembered that I told my friend in 2002, I helped the economy, I paid my mom to visit Florida second time after I lost the job in 2001; I purchased the laptop in 2002; I gave away cash $2000 US dollars for expense of my mom's trip in China.

I will look into this issue later. Once I learn more about personal finance, I should have ideas how to think and make personal finance decisions.

Case study: Biggest three mistakes as a home maker in 2002

January 1, 2019

Introduction

It is the idea to write top three mistakes I made from Sept. 2001 to August 2002 as a home maker. I decided to study bible and learn to be a Christian, I baptized with my mom in 2001 in Palm Beach Christian church. I like to do a case study on this topic called biggest three mistakes as a home maker.

Case study

I stayed at home and invited my mom to come to Florida second time in 2001 Sept, I made so many mistakes in terms of being a good person in the community and also in my personal finance.

I made so many mistakes and it was so hard for me to learn how to make a living without income. I just made net income over $110,000 US dollar from 1999 to 2001 two jobs in three years. But I did not calculate how much my net income is. I only had less than $20,000 US dollars net asset in my checking and saving account. I burned net income with $90,000 dollars with a 3 years old Ford Explorer with $8000 debt (I paid 27 installments + $3000 down payment), a mortgage, paid off my mom's home and internal furnished ($8000 US dollars), all those cashes went away under pressure of relatives, vacation to Shanghai, long distance phone calls with arguments (60 cents/ minute international long distance), furniture, vacation to California, New York, and Smoky mountains, Miami, Orlando (4 round trips from Boca Raton to Orlando from 1999 to 2002).

Overspending problems

I still paid $2,000 US dollars to my relative after I paid off my mom's home. I paid one way airline ticket to invite my mom to visit me in 2011 second time. I like to live with my mom and try to help her recover from her first stroke in her 70s. She was 70 years old.

I did not have skills to make a living and learn how to save money. I had to push myself learn and live without income in USA.

Waste of food

For example, I bought a bag of white flour, more than 50 lbs from Costco. I tried to learn how to make bread, and then I tried to learn how to use baking soda to make a bread. After a few months, I threw away whole bag of white flour since there were some bugs growing inside.

I also have to learn how to deal with my loss of job, learn how to handle finance challenges. I decided to attend bible study in a small group.

Liabilities

I had car loan to pay every month $376.95 (47 installments, 20 left, $7539), and mortgage to pay $480/ month for a condo, and also I had to pay food and gas and car insurance etc.. Only thing I learned is that Ford manufacturer interest rate is low as 1.99%.

Careless and minor incident

I made a lot of mistakes in terms of driving my car Ford Explor 1999. I did not pay attention to what I did, one time I forgot to close gas cap, the light shows to check gas; I called my friend to ask his advice, and I tightened the gas cap.

Bible study 

I already built a bad habit to show off the wealth. This is the first time in my life that I chose to be a Christian and learned to be humble. I stayed with bible study small group and I chose to be a Christian.

Canadian immigration

I had to push myself to overcome the stigma on myself. I learned that it was hard for me to make a living now. I did not have permanent resident in USA, I started to search for my opportunities, I consulted the Canadian immigrant, I did not have enough score to immigrate to Canada, I missed two points; If I have a spouse with a university degree, I can add 3 points; Or if I have a relative in Canada, I also can have additional 3 points. I had to stay in Florida.

Biggest finance mistake 

First thing I found out today, this New year's day, the biggest financial mistake I made in Feb. 2012. I sold VIGRX mutual fund in my IRA account. Here is my blog.

I may argue to myself that if I do not learn what is growth index fund, then I will sell it as a loss in next recession around 2008 as well.

One of ideas is to purchase the growth index fund back in next recession in 2008. When I closed stock and IRA stock account in 2010, actually I should put everything in VIGRX growth index fund instead, 15 years lowest point, 15 years implies from 1994 to 2009.

Actionable Items

One thing I analyze today, new year's day after more than 17 years.

Case study: How to measure the loss?

Jan. 13, 2019

Introduction

It is my personal finance research. How to measure financial loss? I am not sure in personal finance business, how to define those expenses and analyze them properly.

Case study

In 2012, I sold VIGRX fund since I original paid $3000 dollars, but the value went down below $2000, so I sold it in 2012. And I never review again and try to purchase again the same fund. I did not spend time to study the economics and market, and understand the growth and up-and-downs.

From 1999 to 2001, I spent clothing shopping over $6,000 US Dollars, I spent in 1999 on citi credit card $7000 dollar wants not need items. I did not know how to classify those items in personal business accounting term. One thing I knew that I could not take with me from Florida to Vancouver, since I could not put all those items into my Ford Explorer. How to count those expenses as loss?

I just learn a term called mini leaks, I like to learn personal finance and how to handle those disposable expenses, how to budget and manage those expenses.

ANC On The Money: My Money Story: Edward Lee

Here is the link.


13:00 / 21:48

I noticed many people are now interested in investing in the stock market because the index is really doing well. Do you think this is the time for us to think about Warren buffet always says - that we should be fearful when others are greedy?


Only 1% people are in stock market.

Invest in good companies that pay dividends and over time you will realize the power of compounding.

Long term 10 - 20 years.

My understanding on VIGRX from 2001 to 2018, 17 years, it is 3 times more on price.

Do not try to time the market.

19:27/ 21:48

5 Ps to become financially savvy:
- PEOPLE
- PRODUCTS
- POTENTIAL OF THE PRODUCT
- PERDICTABILITY
- P.E. EVALUATION

What I learned in 30 years of investing

Here is the link. John Rekenthaler, the author is vice president, Morningstart, Inc.


Fact 1:

In March 1988, I placed $1,000 in my first mutual fund. Since that time, I have left the fund untouched, to accumulate. And accumulate it has. Today, that $1,000 is worth $14,834.

15/01/19

My own story 

I did almost the opposite. In 2001, I bought $3,000 us dollar VIGRX, and then in 2002 I sold as a loss, and then in October I bought an expensive SONY laptop $1800. I killed the everything, the SONY laptop still is in my friend's house in Florida. 


Argument 1:

If stocks return 10% annually and inflation is 3%, it's difficult to go wrong with equities. High costs, mistimed trades, poor manager selection … the mistakes wash away. To be sure, such decisions matter. Best to get them right and maximise one's profits. Nonetheless, the critical decision was to hold stocks. Better to be dumb with equity than smart with bonds.

Exercise 1:

How to Reach $1 Million

Assuming that my health holds up, and that I have no immediate need to spend the money, my first investment could have an effective life span of another 20 years, roughly speaking.

If so, and if the fund were to perform as it has in the past, then that 700% after-inflation increase would become 2,500%. 

Now we're talking. Reaching that hypothetical goal of $1 million, as defined by 1988 dollars, would have required a $40,000 initial outlay. 

Beyond my means at the time, but not an inconceivable sum for somebody in his late 20s.

Of course, this exercise only involves one purchase, with no further activity.

In real life, the stock market mathematics are far easier, because people typically invest on an ongoing basis.

If they do so with equities, stay the course for several decades, and stocks perform anything like they have during my working career, today's young workers will fare well.

In 1988, I bought stocks because I landed a position at an investment research company. Had that accident not occurred, I would not have purchased equities that year, and probably not for many years to come. The blind squirrel stumbled upon the nut.

Will the next generation be similarly fortunate? I have assumed that that future real returns on equities will resemble those of the past. That was what I believed in 1988, and it turned out to be correct. Will 2019's novice investors find that same nut?

The answers to those questions are beyond anybody's pay grade.

We do not, and cannot, know if the soundest investment advice that the next generation can ever receive is what I would instruct my younger self: buy stocks early, and buy them often. However, the subject bears discussion. As I have realized while thinking through my 30-year Morningstar anniversary, the level of stock market returns dominates all else. It is, as the saying goes, the elephant in the room.

Be your own sugar daddy

Feb. 19, 2020

Introduction

US open champion Stephens Sloan posted on Instagram on Feb. 19, 2020 wearing t-shirt "Be your own sugar daddy". I like to work on a short research how I can be my own sugar daddy in 2020.

My own sugar daddy

How should I think about this statement?

I still remembered that I made mistakes back in 2009, I wasted time and was a victim of wishful thinking. I should have invested time to learn personal finance, and economy, recession and how to build wealth.

If I work hard back in 2009, then I will stay put and leave my par 401 K and IRA portfolio staying with Scottrade.com. I should have grown those $26,000 dollars with S & P 500 index.

Continue

Feb. 23, 2020 11:48 PM
I like to continue to work on this topic. I made so many mistakes in my investment starting from 2001. The first one related to VIGRX costed me over $10,000 dollars. I shared my mistake on wechat group recently.

Here is my post.

Case study: RBC bank and my date with mortgage

January 8, 2019

Introduction

It is my personal finance research. I came cross the article called cross border mortgage in google search. So I visited RBC bank today. I like to date my money, and try to get some mortgage advice.

Bank willing to work with US asset

I am banking with Scotia bank. I set an appointment with scotia bank and tried to sell RRSP fund and plan to purchase Scotia index fund. I like to get into index fund for next 12 months. I need to learn to watch the market and discipline my behavior. I did personal finance research and then I found out that I sold VIGRX in 2002 and then totally forgot it.

I am a single person but I should try to make opportunities for me to date my money, so I can learn from bank mortgage specialist and new graduate from top universities in Canada who works for those banks.

I know that the market is too high and a lot of people gambling the real estate. I should time the market and now it is too late.

Paper work to prepare

1. Last three month USA chase bank statements for my rental
2. My US asset last three month statements
3. My Canada asset last three month statements
4. My Property tax and condo association fee for rental property, rental income.
5. My social security in USA and other
6. 2016 T1 General
7. 2017 T1 General
8. Notice of assessment
9. 20% down payment

10 reasons I failed to start my personal finance research

January 25, 2020

Introduction

It is my personal finance research. I like to figure out what are 10 reasons I failed to work on my US 401 K and IRA from 2010 to 2019, I did not start my personal finance research until Nov. 2019.

10 reasons

I like to write down 10 reasons and also push myself to learn more about personal finance, and build a community around myself to build wealth and grow rich.

1. First, from 1999 to 2009, I did not spend over 100 hours to study personal finance, investment; I never review my credit card statements, learned how to use Excel sheet to calculate my expense. My foundation of business analysis was too weak;

2. I made mistakes in investment. I sold VIGRX in 2001 to have 30% loss; I did not learn anything until 2009 I sold everything in stock market in 15 years low; What I did was to ignore the need to learn how capitalism works;

3. My christian belief, and my church activities, I did not push myself to learn basic skills how to do book keeping, and invest time to read investment books at all. My attitude to build wealth and become rich is wrong, I still was in hope to get back to high paid software engineer job;

4. I was under stress from 2010 to 2019. I got addicted to have road trip to USA to do cloth shopping;

5. I spend a few years to play tennis and tried to lose weight. I did that from 2012 to 2018.

6. I worked on Leetcode from 2015 to 2019, and worked on my coding blog;

7. Whatever I do, I should always keep study how to build wealth and grow rich every year;

8. I spent over three years to learn how to file Canada immigration application for my nephew from 2016 to 2019. I should always put my own goal first;

9. I always think about being nice and also practice my Christian belief; My mindset is to live a life from a paycheck to a paycheck.

10. I do not learn and spend time to watch youtube.com video, instead of watching Netflix for entertainment.

Overall, I dot not push myself to advance myself in terms of reading skills, and other challenging activities like contests, and other activities like blogging.

The stock market is to transfer money from impatient people to patient people

Jan. 28, 2019

Introduction

It is the statement I learned from Tony Robbins. "The stock market is to transfer money from impatient people to patient people". I like to write a blog based on this statement.

Impatient person

I was an impatient person from 1998 to 2001. I also was an impatient person in 2002 since I sold VIGRX mutual fund as a loss; I was an impatient person in 2008 and 2009.

I like to share what I wrote in 2009 about my thought process.

Dollar Cost Averaging

Here is my favorite finance planner's blog. What I like to do is to go over the blog again, I specially like to dive into the dollar cost averaging table, and then look into things I should learn from.

This is best teaching compared to all other on youtube.com. I specially like to learn from data. Based on the table in the blog, I will write another blog and continue to do my case study of IRA CD account analysis.

Highlights of good teaching in the blog:

1. Market timing, how to avoid market timing
2. Falling market is the great time to invest, why? How to invest?

Falling market, gains, regular saving, how to gain from a falling market. There are a lot of good ideas out there. One of them is to save monthly and put them in the stock market. 

Dollar cost averaging

Dollar Cost Averaging is a strategy in which an investor places a fixed dollar amount (or indeed any other currency) into a given investment such as a unit trust, on a regular basis.

The investment generally takes place each and every month regardless of what is occurring in the financial markets. As a result, when the price of a given investment rises, the investor will be able to purchase fewer units. When the price declines, the investor will be able to purchase more units.

Millions of investors around the world employ a dollar cost averaging strategy because it offers the following benefits:

• It’s an attractive option for investors who want to contribute to their investment portfolios on a regular basis.
• It eliminates the issue of ‘market timing.’ As a result, an investor’s returns will be determined more by the overall trend in a given fund as opposed to the investor’s specific entry price. In addition, it helps investors reduce their cost basis on securities that decline in value.

My sharing

Why market timing is not a good idea? I like to say something. Buy high and sell low. Cut the loss when the market is low. Loss aversion is bias of investor, I did sell VIGRX fund in 2002 and then I totally forgot it. 

Example:

Two cases

It is great investment opportunity for a stock price with 30% loss in value; how to take advantage of the loss of value? One of ideas is to continue to purchase no matter the price goes down or goes up. 

You decide to invest $1000 per month into two funds. During the first 12 months, Fund A shows steady growth at 2% per month. Fund B falls by over 30% in the first few months, recovering back to the initial level by month 12. In which fund will you have accumulated your greatest investment value?

The answer might be surprising. Take a look at the figures:

Let us review the facts:

           Fund A             Fund B

gain    $1401               $3389
units   107.82              153.89

For example, if I purchase Vanguard total market index fund, as long as I continue to purchase the fund, I will be able to make more profit if the market goes down and goes up again. Recession, market correction is good for me as a long term investor.

In summary, over 12 months, Fund B has delivered better than twice the returns of Fund A in percentage terms!

A few more ideas to share in the following:

1. The Dollar Cost Averaging strategy for reducing market risk relies on (i) you having a suitable time horizon for your investments, and (ii) your chosen fund recovering from the decline and returning to the upward trend. In the example above, if you needed access to your funds when Fund B is low, you will make a loss on surrender.
2. Dollar Cost Averaging reduces market timing risks for volatile investments and is a reason why regular savings plans are so popular for building long term financial security. The example above could be twelve years rather than twelve months, but the concept and outcome holds true.
3. Dollar Cost Averaging can be appropriate when considering higher-risk investments such as emerging market funds, if the investor anticipates a positive overall trend in the medium to long term.

Actionable Items

I plan to read more posts from the author. Here is the list of posts for me to read.

What if I know the stock market

"The stock market is a device for transferring money from the impatient to the patient." - Warren Buffett

It is a good research topic for me to work on.

I am a programmer but I like to do a short research. My interest is superficial, play tennis, shopping, I bought thousands dollar clothing again starting from 2010, it is junk since they are my wants and not needs. I watch netflix shows to take breaks instead of learning things on youtube.com on personal finance until Nov. 2018.

2018

One day I felt so lost since I thought about other thing not tennis, I was playing tennis against the wall. I like to have a home, own a home some place in Canada, but I failed to time the market. I talked to a Chinese friend who also has a real estate license. He explained to me that I did not know the market. Now it was too late. It was in 2018

I felt that I like to start something new. Why I just work on a case study first.

Because I do not know what problem I have. I think that I have income problem not expense problem. I do believe that I should hold on to grow rich until I can get more income first.

2009

I did not know the stock market, when in recession 2009, I took the loss, sell everything to focus on my immigration case.

My attitude has problems. I should learn more about stock market starting from 2001. I was a home maker in 2001.

I made a mistake to sell VIGRX mutual fund in 2002, and then totally forgot it, do not talk about it. I moved on with other interest.

I did not succeed the first time to file Canada immigration. I had 30 days to respond the immigration office to provide finance letter to show $10,000 Canadian dollar fund. The consultant did not receive the mail and I did not know where I was in the application status at all. All I am doing is to wait for the result. I got denial of application since lacking of financial statement. I took advantage of 60 days to appeal my case, started to file appeal for leave in Canada federal court by myself.

I felt so disappointed and this was the first time I learned that I could not turn back the clock.

I was impatient, and I sold everything in stock market and took the loss in 2009, and I decided to move on immigration case.

Case study: My 401 K and IRA account management

Dec. 25, 2018

Introduction

It is important for me to find out how to improve my management skills. I like to work on my person asset first. I like to write a blog to document my management performance, and I like to push myself to dedicate time, specially holiday season one week break from Dec. 24 to Dec. 31 to do personal finance education, and case studies.

Case study

Here are the facts to document my investment.

Based on my W3 from 1999 to 2001, I invested money from paycheck to my 401 K account.

1999 Atlantic Entertainment $1880
2000 Atlantic Entertainment $3610
2000 Trendium                        $650
2001 Trendium                      $5490
2004 IRA deposit                  $3000

total deposit: $14700

The value in my New York community bank IRA CD in 2018 December is $19300.00

I did have loss in stock market and then I moved everything to IRA CD from 2008. Total income after 18 years is $4600.00 dollars.

If I only count those $10,000 401 contribution from 1999 to 2001, then after 18 years, $4600 return will be only average 2% a year.

I need to figure out how to manage my asset better. I should spend time to search ideas how to manage better on my IRA CD.

Actionable Items

One of ideas is to sell $10000.00 in 2008, and then pay 10% penalty, and pay tax, and then purchase a property in the city of Yichun.

I went back to China and changed my status from H1-B to F1 visa. I should prepare myself better in terms of finance. At that time, I was told to work on English test IELTS for immigration to Canada.

I need to spend time to work on my asset carefully every year. I have to push myself to find ideas how to manage.

One of ideas is to move money to stock account I had, and purchased dividend stocks, like MSFT. At that time, Microsoft stock was lowest price around $20.00 to $40.00, dividend will be more than I can get from the interest.

One of ideas is to purchase low cost vanguard index fund in 2010.

Follow up 

Jan. 20, 2019 7:06 PM
In 2019 new year day, I did whole day personal finance research. I found out that in 2001 I sold VIGRX $3000 mutual fund in 2002, with a loss of $1000. I totally forgot it from 2002 to 2019. I documented the transaction in my blog.

I did not review my finance every day. I found the records in my FAU web page. I learn that the index fund should worth $10,000 dollars if I did not sell in 2002.

Follow up 

April 14 ,2019

I think that I should put those fund into bond market, and then when the market has recession, I will put them into Vanguard total market index fund, or a few other Vanguard index fund.

How to tell if I am below (should be above now) average as an investor?

Feb. 12, 2020

Introduction

It is time for me to learn how to evaluate myself as an investor. I did buy high and sell 15 years low in 2009, and I did the same thing in VIGRX in 2001. How should I start to learn to evaluate myself or other above average or not.

Above average

I just could not believe that I was 1% in 2009 to act reactively, and I like to figure out how to evaluate myself where I am at the very beginning.

Every area I should work on at least 100 hours first in order not to stay 1% lowest level.