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A Potential Solution to Reverse Dollar Cost Averaging...
A Potential Solution to Reverse Dollar Cost Averaging...
...Is a "Standby" Reverse Mortgage
Investing in anything (stocks, bonds, real estate) has its peaks and valleys. One strategy used to save up for retirement during your accumulation, or working, years is dollar cost averaging.
Dollar cost averaging means you invest a set amount of money into the same investment portfolio for a set amount of time. For example, $100 every month for 3 years into Wal-Mart stock. This investment allows you the flexibility to buy MORE units when the market is DOWN (because stocks are worth less) and buy LESS of those same units when the market is UP (because stocks are worth more).
The end result is to help your money grow during your working years in order to live comfortably during your retirement years. 
During retirement, however, you might find yourself with a REVERSE dollar cost averaging because you are no longer buying, but selling, so you sell MORE when the market is DOWN and you sell LESS when the market is UP.
For example, at the age of 70, you are required to take a minimum income distribution of 3.7% if you have an individual retirement account or 401K. Eventually, reverse dollar cost averaging will bring down the value of your ... more

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