Post
Topic
Board Speculation
Merits 1 from 1 user
Re: Buy the DIP, and HODL!
by
Merit.s
on 02/05/2025, 11:46:54 UTC
⭐ Merited by JayJuanGee (1)
i plan to invest $100 weekly for 5 years ($26,000 total) to average market entry.

Op I think you are getting yourself confused,
  
   Weekly investment you said : $100
    Total for a month investment: $100× 4weeks = $400  
    And I think your yearly should be : $400 × 12 months = $4,800

In your previous calculations it seems you had an error, just like you said investing $100 per week would indeed result to a yearly investment of $4,800  and not 26,000 so take corrections of that.
illanz is very correct. It's you Mr Reporter that is wrong because you missed something. Let me break it down for you so that you can understand better.

52 weeks = 1 yr.
100 x 52 = 5200 for a year
5yrs = 5200 x 52 = 26000.

However, back to illanz. I don't think that it will be possible for an investor to consistently invest $100 a week for 260 weeks accurately. This is because some weeks, your expenses might be higher than what you expected and some weeks smaller.

Secondly, I believe that as time passes on, we need to keep on improving our financial strength to be stronger by looking for means to increase our income which most people do achieve that. For instance, if you are working for the government, promotions would be given from time to time and there is need for you to improve your knowledge too in that field.

It's good that when your income increases, that you should also increase the amount that you are using to DCA so that you can be a bit aggressive during that period of income increase. Also it's good to practice the lump sum buying, whereby, you can buy bitcoin with funds that comes in which  you don't expect and plan for to help fasten the growth of your portfolio.

Setting up a reserve funds needs to also be achieved when you have started your bitcoin investment, and you can use part of your reserve funds to buy bitcoin at a cheaper rate when bitcoin price experiences the dip. Any new investor that can tweak to using all three methods in five years would be able to achieve more than $26000 in five years. It's only if the investor's discretionary income increases and he still chooses not to increase his DCA amount and also ignore other buying opportunities that comes his way when he has funds to do that is when he will have that exact amount.

On the other hand, if the investor does not take his bitcoin investment seriously and be consistent and persistent to keep his bitcoin accumulation on going for that five years, he might not accumulate upto $26000 in 5 years time.