 Participating early on in a large market downswing has been shown to be devastating to the success of long term retirement, for example.Author Timothy J. McManaman further outlines the benefits of Value Averaging when applied to the popular 401(k) tax qualified investment vehicle.As stated in McManaman's book, Building a 401(k) Fortune, Value Averaging a 401(k) is a precise method of making periodic internal transfers between Equity and Money Market funds within a 401(k) to take advantage of market fluctuations.