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Re: 2040forsight post# 635

Friday, 03/12/2010 10:01:54 AM

Friday, March 12, 2010 10:01:54 AM

Post# of 796
Hi 2040

You may want to follow the discussions on the AIM board.

>>>>What fund or security do you put the cash reserve in ,in an aim account? What have other aim users done?

Is the implication of a 50% cash reserve predict a correction will happen soon.<<<<<


1) Either open an account at a discount broker to invest in ETFs or Vanguard to invest in funds.

2) Make a kist of the funds you eventually want to own

3) On the AIM site is the V-WAVE which is a good guideline as to how much cash to start an account with. With the market going up over the last year the reccomendation for cash reserve has been climbing. Cash should be left in a sweep account ( either money market or FDIC insured). It needs to be liquid and stable value.

4) A 50% cash reserve is AVERAGE. As you sell, your cash reserve will increase and you should be happy if it aproches 80% in periods like January of 2000 and October of 2007. If one of the funds you buy goes down your cash reserve will decrease as you buy more. So you want cash available to buy more as one of your funds goes down. Each fund will have its own cash reserve.

Not always
Toofuzzy

Take the road less traveled. It will make all the difference.

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