Good morning D42, Re: SAFE settings with diversified mutual funds or broad index funds.....
Generally 10% Buy and zero Sell SAFE works well with such investments. Even with mutual funds I still stick to a 30 day delay between sequential buys. In a broad market downturn, we need to preserve our purchasing ability and not burn through the cash too quickly.
When the total SAFE is reduced, we don't have as big a discount from selling back to buying, so that first buyback occurs more quickly. Thenafter everything occurs just about as Original AIM would have it. This is good for the quick market dips, but in an extended bear market might have one buy too frequently if less than a 30 day delay period were used.
My thought is that CASH can be depleted to zero with AIM, therefore is more "precious" than is the stock or fund. AIM, by its math, won't allow us to go to 100% cash, so shares are inexhaustible but cash can reach exhaustion. Therefore we need slightly different rules on the Buy side of AIM than on the Sell side.
Best regards, Tom
