 Personal Finance PowerPoint Presentation, Value Averaging. Prepare to get financially fit by practicing personal finance. Most of this information comes from Investopedia Value Averaging, which you can find online. Take a look at the references. Resources continue your research from there. This is by Adam Hayes, updated May 5th, 2022. In prior presentations, we've been looking at investment goals, investment tools, investment strategies. Keep in mind the two major categories of investments, that being fixed income, typically bonds, equities, typically the common stocks. Also keep in mind the tools you are using, which might include mutual funds and ETFs, where your strategy could be a little bit different than if investing in individual stocks, in which case you might be drilling down on those financial statements themselves, doing ratio analysis and trend analysis on them. Keeping that in mind, what is Value Averaging? Value Averaging VA is an investing strategy that works like dollar cost averaging, DCA in terms of making steady monthly contributions, but differs in its approach to the amount of each monthly contribution. So when we're putting money into our investments, even if we're a long-term investor, possibly investing for something like retirement, we would still like to be putting our money into the market in the optimal timeframe. Now remember, you could take the approach of saying, hey look, I'm just going to put some money in every pay period. If I get paid bi-weekly, I'm going to be making my payment bi-weekly, and the idea there being that if you zoom in to what's happening in the market, you're going to see these peaks and troughs of course, but if you zoom out, the idea would be I'm a long-term investor, so I'm going to be purchasing sometimes at the bottom, which I would like to do in the short-term troughs and sometimes at the top and so on. But in the long-term, hopefully we're going to be good because we're putting it in there for the long-term investment strategy. However, still we would like to be buying at the optimal at the troughs, especially if there's going to be like an extended downturn, for example, or an extended upturn, then we would like to be optimizing our investment. So we could use other strategies to try to optimize a little bit more in terms of when we're going to be putting our investment.