Very interesting that you have discovered the AIM-Like Retirement Income Model Clive.
This is in essence exactly like the VORTEX AIM Model for generating Retirement Income if one already has a healthy portfolio in place.
The method is illustrated in the Dutch Version of my book on the Vortex Method but is also referred to in less detail in the English Short Version of the book.
Using the variable aggression factors asymmetrically one can set Vortex to regularly sell more share-value than is bought , creating retirement income regularly. Depending on the settings you can adjust the income level higher or lower so that in principle one can keep the investment base "constant". . .or reduce the value degradation rate. . . for a reasonably well behaved price development.
My normal parameter settings for creating Portfolio Growth is something like this:
Sell Aggression = 0,3 to 0,6
Buy Aggression = 0,6 to 0,9
For the Retirement Income Mode this is simply reversed:
Buy Aggression = 0,3 to 0,6
Sell Aggression = 0,6 to 0,9
This means that if the prices dips a bit lower than usual there are relatively strong Buy Opportunities at the dips and this will generate extra profits on the sell side, or to let the Portfolio grow, even when profits are taken out regularly.
It is simply an accelerated dynamic form of a Constant “Dollar” Investment Plan for which regularly monthly investments are adjusted +/- so that at a time of low prices no money is taken out, or even some extra money is put back in.
That sounds exactly the same, in principle, as what you have described. . .The only difference with the Vortex Retirement Mode settings is that the withdrawals and the reinvestments are not executed on fixed dates but are driven by the price peaks and price dips. . .reducing the share base with the smallest possible number of shares. One can even plan that the Investment Base slowly reduces in say 20 years so that one is 80 years old most of the Investment has been paid out
I have described this feature in Vortex on various occasions in the past but got little or no reactions to it.
