Toofuzzy,
Perhaps you would be kind enough to explain why you have chosen to "AIM" the Leveraged ETF, ERX, rather than "LD-AIM" it. I have never done an LD-AIM program, and I know you have, but I studied the calculator that Steve has provided, and it seems to me that a Leveraged ETF is "ideally suited" for the LD-AIM concept, because it will ultimately "sell-out" the actual shares in a long enough Up Trend (leaving only "Virtual" shares). AIM, on the other hand, will have you holding on to a "Core" position, through all ups and downs over the years, and you may face the prospect of the Reverse Splits, if the down trends are particularly sharp or long-lasting.
The second question I have is, have you determined that AIM will provide you primarily with Short-Term Gains, and so you are not concerned with the Leveraged ETF possible failure to qualify for Long-Term Capital Gains tax rates?
I ask these questions because I have a similar position in NUGT, the 3X Leveraged ETF of the Gold Miners Index/ETF (GDX) and am facing some of those decisions. I have been buying NUGT as AIM directs, but plan to sell "all" my shares doing something similar to Ocroft's plan for "buying", but on the "sell" side. Both NUGT & ERX are 3X Leveraged ETFs of "commodities" and may qualify for another tax consideration altogether. I also do not know for certain how this will affect my previous tax filing of "estimated" taxes on my rather large gains (15 months) in TNA. I might get a very unpleasant surprise in February 2015 (I am holding cash to cover this surprise, but the penalties and interest would still hurt).
Regards,
Bob
