A.I.M. "In Depth" Q&A

[OldAIMGuy]

Welcome KH, I see Toof has already replied to your question.

Over on the main AIM topic board you'll find something called the v-Wave. It helps one to focus on an appropriate cash reserve amount for either diversified investments (broadly based mutual funds, etc) or individual company stocks. The two have generally different risk levels and hence different starting and ongoing cash reserve requirements.

Mr. L used a "One Size Fits All" approach to cash. The v-Wave is a reasonably successful attempt to improve the fit over his approach.

As far as stocks or funds, the world is much changed since the original AIM manuscript was published. AIM will help any investment given enough time. Diversified mutual funds have lower volatility than do business sector exchange traded funds and lower yet than individual company stocks as a general rule. AIM likes healthy and profitable volatility capture.

So, much depends upon the makeup of your nest egg. If it is substantial, you can divide it into many more AIM managed pieces than if it's just a starter AIM account.