I see TooFuzzy has already replied.
1) Generally Mr. Lichello didn't feel that regular additions to an AIM account was necessarily a good idea. The main reason is that you might be buying with your monthly addition just when AIM is telling you to be selling some shares.
It would be better to leave your existing AIM account to itself and start something like Twinvest for your monthly savings. Let the Twinvest account build until it reaches critical AIM mass (maybe $10,000) and then convert it to AIM. Twinvest splits each month's allotment between the "stock" and "cash" sides of the ledger based upon the current price/share vs the starting price/share. Since there's already cash there, when you switch to AIM later on, it will be all set with cash and stock for management.
2) Consider using "Termvest" for moving a larger sum of money into the market when times are unpredictable. It's much like Twinvest, but has an end date. In your case you are thinking of adding so much per month over a 12 month time frame. Again Termvest divides the total to be invested between equity and cash for each installment. At the end of the term (in your case, 12 months), you would have an AIM account funded with stock and cash and flip the switch to AIM.
"TERMVEST - My brother came up with a clever use of the Twinvest idea. Let's assume that you have received a windfall of $10,000 from a bonus at work or a kindly Aunt. You already have various AIM accounts going and to throw $10,000 at any one of them would choke them with kindness. You want to get the money into the market, but aren't confident that it's a great time to sink that kind of cash into a new investment. That's where TERMVEST comes in.
Let's assume you decide that this money should be deployed over the next 12 months. You feel that if you put in a smaller amount each month that maybe you will do better than just lumping it in right now. Here's how to figure the amount to use with TERMVEST. Take the total amount to be committed, divide it by the number of periods in the term. The result is the value that you use with Mr. Lichello's Twinvest for the term.
In this example, we want to complete the project in 12 months (that's the term) so we will use 12 as the divisor. So, $10,000 / 12 = $833 per month that we'll Twinvest. For the initial period, Twinvest would have us invest $625 and keep $208 in the cash reserve. Each month Twinvest will tell you what the appropriate amount will be to invest. At the end of 12 months, your account will be fully committed to the new investment, with equity and cash reserve proportional to what the market's demands have been. At that point, you start up AIM. Total the costs of all the equity purchased during the 12 month term and use that for your AIM Portfolio Control. There you have it. TERMVEST! A special thanks to my brother, George, for this idea."
Buy from the Scared; Sell to the Greedy.....
