AI
Thursday, August 29, 2024 7:22:54 AM
Simplified AIM
If you AIM a single major stock index fund where dividends are automatically reinvested, and in retirement spend using your credit card where once/month you sell some of your portfolio value in order to pay that bill off, then AIM management can be simplified down to once/month reviews a week or so before the credit card bill is due to be paid.
You just need to store the AIM (on paper values) for Portfolio Control (PC), Number of Shares (#S), AIM cash (AC), and reference the stock fund price at the time of the review (I use real (after inflation price so have to divide that by the CPI index, where I use the one month lagged CPI index for that given its a late reported index)) ... pop those figures into a AIM calculator - that identifies the AIM %CASH applicable at that time.
With a second calculator you can drop your actual portfolios stock and cash (I use gold for 'cash') and the AIM %CASH figure as calculated above into that, along with how much you need to pay off your credit card bill .... that then indicates how much stock (and gold) to sell/buy at that time.
One sell trade/month that you'd be making anyway in order to make a withdrawal to pay off your credit card bill. Maybe a purchase trade, if the actual amount was meaningful enough to warrant that. With by broker I get a free trade each month as part of the package.
Basically realigning your actual portfolio into alignment with AIM each month, rather than trading at each AIM trade signal and where with a simple calculator and just a record of updated PC/#S/AC you're guided as to the value of stock to trade via a couple of mouse clicks each month (plus of course logging into your brokerage account to actually make the trade(s)).
Easy/simple enough to teach a partner who might otherwise be disinterested. Three updated figures to record (PC/#S/AC), reference the current brokerage holdings/values and current share price, run the calculator(s) and place a trade. Done for the month.
Clive
If you AIM a single major stock index fund where dividends are automatically reinvested, and in retirement spend using your credit card where once/month you sell some of your portfolio value in order to pay that bill off, then AIM management can be simplified down to once/month reviews a week or so before the credit card bill is due to be paid.
You just need to store the AIM (on paper values) for Portfolio Control (PC), Number of Shares (#S), AIM cash (AC), and reference the stock fund price at the time of the review (I use real (after inflation price so have to divide that by the CPI index, where I use the one month lagged CPI index for that given its a late reported index)) ... pop those figures into a AIM calculator - that identifies the AIM %CASH applicable at that time.
With a second calculator you can drop your actual portfolios stock and cash (I use gold for 'cash') and the AIM %CASH figure as calculated above into that, along with how much you need to pay off your credit card bill .... that then indicates how much stock (and gold) to sell/buy at that time.
One sell trade/month that you'd be making anyway in order to make a withdrawal to pay off your credit card bill. Maybe a purchase trade, if the actual amount was meaningful enough to warrant that. With by broker I get a free trade each month as part of the package.
Basically realigning your actual portfolio into alignment with AIM each month, rather than trading at each AIM trade signal and where with a simple calculator and just a record of updated PC/#S/AC you're guided as to the value of stock to trade via a couple of mouse clicks each month (plus of course logging into your brokerage account to actually make the trade(s)).
Easy/simple enough to teach a partner who might otherwise be disinterested. Three updated figures to record (PC/#S/AC), reference the current brokerage holdings/values and current share price, run the calculator(s) and place a trade. Done for the month.
Clive
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