Page 10 - Marshall Financial
P. 10
Cash Implementation
• The feeling of regret from investing a large amount prior to a major market downturn is very real and we are very
cognizant of this fear.
• At the same time, behavior is one of the single greatest detriments to portfolio results.
• Our cash implementation model provides a disciplined and repeatable approach that removes emotion and
subjective decision making from the process.
• Dollar cost averaging (DCA) involves buying the same dollar amount of securities at consistent time intervals
regardless of price levels.
• The DCA implementation model can help to reduce short-term volatility by taking advantage of adverse market
movements - more shares of an asset are purchased when prices have dropped and less shares are bought when
prices have risen.
• This strategy also removes the emotional component of implementation by committing to a regular and regimented
schedule of cash deployment.
