Tuesday, June 16, 2020 8:51:41 AM
Good morning Jack, Re: Twinvest..............
I used Twinvest starting around 1990 or slightly earlier to save $$$ for my children's college education. Part way through the Twinvest accumulation phase I had to re-start Twinvest as per Mr. Lichello's suggestion that once an investment had doubled in share price Twinvest becomes less effective. I simply re-started the program with a new Twinvest Code and it was off to the races again.
Twinvest is a practical substitute for Dollar Cost Averaging, the most common "accumulation" program used. Further, it allows for easy transition to AIM once an appropriate core position has been established (it accumulates both the "stock" and "cash" sides during Twinvest).
Think of Twinvest as the accumulation device where AIM is the management device.
I never did use Twinvest with an individual company stock. At the time it would have been impractical with high commissions. Back then there were some mutual funds that allowed small periodic additions and were commission free, so I used those.
Today I am using Twinvest once again while I fund a "Simple IRA" with bi-monthly payroll contributions. Instead of Mr. Lichello's initial 75/25 Twinvest split between stock and cash, I chose to be a bit more aggressive at 80/20. It's been about 18 months since I started and I'm pleased so far. Sometimes I let both contributions build on the Cash side before deploying since the "stock" component is rather high priced on a cost/share basis. Here's screen shots from the ancient Newport software I still use:
In the first few months it was a struggle to keep the ratio near what it should be because of the high share cost. Later it was easier. Note that Twinvest did a nice job of accumulating more shares during the market depression while actually spending some of the cash. I missed allocating several contribution periods between the low and three weeks ago. Then I got it back on track. Right now the account is 78% invested and 22% cash.
I'm using a growth ETF for the 'stock' side (RPG) and a mix of a short term income fund (RAVI) and a money fund for the 'cash' side. I haven't decided what I'll do when the total gets above $10K. I might just continue it as is or might switch it to AIM and start another holding with Twinvest.
There's more on Twinvest here:
http://web.archive.org/web/20120609071154id_/http://www.aim-users.com/twinvest.htm
Best wishes,
OAG and OTVG Tom
I used Twinvest starting around 1990 or slightly earlier to save $$$ for my children's college education. Part way through the Twinvest accumulation phase I had to re-start Twinvest as per Mr. Lichello's suggestion that once an investment had doubled in share price Twinvest becomes less effective. I simply re-started the program with a new Twinvest Code and it was off to the races again.
Twinvest is a practical substitute for Dollar Cost Averaging, the most common "accumulation" program used. Further, it allows for easy transition to AIM once an appropriate core position has been established (it accumulates both the "stock" and "cash" sides during Twinvest).
Think of Twinvest as the accumulation device where AIM is the management device.
I never did use Twinvest with an individual company stock. At the time it would have been impractical with high commissions. Back then there were some mutual funds that allowed small periodic additions and were commission free, so I used those.
Today I am using Twinvest once again while I fund a "Simple IRA" with bi-monthly payroll contributions. Instead of Mr. Lichello's initial 75/25 Twinvest split between stock and cash, I chose to be a bit more aggressive at 80/20. It's been about 18 months since I started and I'm pleased so far. Sometimes I let both contributions build on the Cash side before deploying since the "stock" component is rather high priced on a cost/share basis. Here's screen shots from the ancient Newport software I still use:
In the first few months it was a struggle to keep the ratio near what it should be because of the high share cost. Later it was easier. Note that Twinvest did a nice job of accumulating more shares during the market depression while actually spending some of the cash. I missed allocating several contribution periods between the low and three weeks ago. Then I got it back on track. Right now the account is 78% invested and 22% cash.
I'm using a growth ETF for the 'stock' side (RPG) and a mix of a short term income fund (RAVI) and a money fund for the 'cash' side. I haven't decided what I'll do when the total gets above $10K. I might just continue it as is or might switch it to AIM and start another holding with Twinvest.
There's more on Twinvest here:
http://web.archive.org/web/20120609071154id_/http://www.aim-users.com/twinvest.htm
Best wishes,
OAG and OTVG Tom
Buy from the Scared; Sell to the Greedy.....
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