A.I.M. Users Bulletin Board

[ls7550]

Thanks Tom

Reasonable choices might be to 80/20 constant weight AIM/cash, with AIM within that using 80/20 initial stock/cash (AIM-HI), as that then starts at 64/36 (close to 66.67/33.33).

Or for more like 50/50 overall then 75/25 constant weight AIM/cash, with AIM within that using 67/33 initial stock/cash.

For the more conservative I suspect you might get away with 'cash' being a 10 year Treasury fund/ladder alongside perhaps more volatile stock such as Small Cap Value (VISVX). Perhaps 50/50 AIM/cash constant weighted with AIM using 50/50 initial stock/cash, so 25/75 initial stock/cash overall. Historically even 25/75 SCV/10YrT constant weighted has worked reasonably well 5.1% annualised real since 1972 compared to 6.7% for 100% all-stock, whilst the worst year was just a -5.4% nominal loss (maximum drawdown -13.6%). AIM could potentially enhance those rewards, but likely also scale up the 'risk' (worst year/MaxDD).

Regards.

Clive