A.I.M. Users Bulletin Board

[SFSecurity]

Hi Toofuzzy, Of course you are correct that one can AIM ETFs and do quite well long term. However, we have different time frames as you are about 16 years younger than I am, if the figure in your profile is correct. So you likely have 28+ years left to AIM while I have about 13+ years according to the SS calculator. Given that neither one of us are likely to want to (or be capable of) manage(ing) the investments all that much beyond 80, I have about 7 years and you have about 23 years, makes a hell of a difference!

I plan to have my daughter take over but in the meantime I have to do the best I can which means avoiding things that lay fallow for 5 years or so. An additional point is that the nature of the market changes over time. Just look at the historical S&P 500. The 40s, 50s, and 60s were relatively slow and steady growth that changed in the 80s to a steeper ramp up. Then, of course, we had two major "corrections" and several minor ones.

Given the issues that are coming to the fore, like climate warming, population issues, and automation, it seems likely to me that we are in for another change in the nature of the market. What it will be, who knows? Brixit/Brexit is one and the possibility has been noted four years ago (http://www.economist.com/blogs/bagehot/2012/06/britain-and-eu-0) but didn't start until yesterday and will take at least couple of years before it is complete so who knows how much effect it will have on the world/USA economy and stock markets.

In a way these issues are somewhat like the changes that happened in the world in the 1400s. World discovery, more international trade and the Black Plague that happened because ships were faster and made port before the incubation period was up. Also think about AIDS and that it had existed in Africa for a long time but when international travel got faster with jet planes is spread. Oddly the index case was likely 20+ years before it was noted by CDC and became widespread. Another example is Zika. My point is that the changes coming down the pike are likely to have small warning signs around years before the contagion becomes widespread.

The same has happened in world markets. Were the South Seas and Tulip Mania prefigured by other events that just slipped by under the radar? I think so.

As to the IRA, positions outside won't diversify those inside as they are each handled separately for tax purposes. Also I am require to make a withdrawal from the IRA but not from the funds outside it.

On another point, taking the emotions out of investing decisions, yes, AIM takes the emotions out of managing your investments but not out of your selection of things to invest in. After all you say to select positions that you would love to hold. Emotions can play a big factor in selections. Are you opposed to pollution? Might if effect your choice of investments? Think of any of the coal, oil or gas companies, BP, Shell, Chevron. In or out? So emotions can play a part in your investment choices even if your management is controlled by AIM.

Minor correction, covered calls require 100 shares per contract, not 1000.

In any case, thanks for the ideas about how to handle the IRA account.

Best,

Allen