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Free Stock Market and Dollar Cost Averaging Calculators

“Making Money Made Simple” by Noel Whittaker was the first money book I ever read. It’s now on its 24th Edition. This book is particularly great for Australians; however what is coming up is good regardless of nationality.

Stock MarketNoel has just loaded up two great new calculators to his webpage: the stock market and dollar cost averaging calculators. These were available on his Purchased CD; however it’s now available totally free on his website.

The following is an excerpt from Noel Whittaker’s regular newsletter.
All you need to do is go to  http://www.noelwhittaker.com.au and click on stock market calculators which will take you to the stock market calculator and the dollar cost averaging calculator.

These calculators are programmed with ASX data since January 1980 which matches the All Ordinaries Accumulation Index and takes into account both income and growth. The stock market calculator allows you to enter a notional lump sum at a date of your choice, and then enter a finishing date, and the calculator will tell you how much you would have made if your investment matched the index.

Here is an example. In May 1990 I bought a unit at the Gold Coast for $500,000 – it is now worth $850,000. If I go to the website and click on the stock market calculator and enter a notional investment of $500,000 as at May 1990, and then choose June 2013 as the finishing date, I can discover to my horror that the same $500,000 invested in an index fund would now be worth $3.95 million which equates to an annual compound rate of 9.4%.

I call buying this property the $3 million mistake.

Or, I could go to the dollar cost averaging calculator and pretend I started investing $5000 a month in June 2008. Even after the global financial crisis my portfolio would now be worth $361,839, for a total investment of $300,000.