FINALLY ready to start this week but...
I still have a few questions. I've read the AIM book and understand AIM "by the book". I'm now trying to figure out how to incorporate the Split SAFE and Vealie into my new AIM program. I have read the links on the aim-users.com website that define the concepts and give some examples.
Could use a little help in making sure I understand the following:
1. V-Wave. If I understand correctly this is an indicator that helps determine how much cash to hold when beginning a new AIM program. The last v-wave reading posted was around 52.85, so it looks like I should just start out around 50/50 in cash and holdings. After a program is underway then this indicator is used as a way of controlling the overstock of cash in a bull market, is that correct? If our cash% is at or above the v-wave then should we ignore the sell signals but change our portfolio control number by 1/2 the sell signal (normally increased by 1/2 of the buy signal)? I just want to be sure I understand this part because I'm a little unclear on this. I also have no idea how to calculate the v-wave so I'd have to rely entirely on it being posted on a regular basis in this bulletin board.
2. Split SAFE. If I'm going to be trading all Vanguard mutuals and ETFs with no commissions (through an account in Vanguard), should I just take ALL buy signals? Would you recommend a 0% Buy and 10% Sell in that scenario? The mutual funds I'll own are more aggressive and I'll trade each fund in a separate AIM account. I also will hold a couple of ETF funds (REIT and Emerging Markets). AIM "by the book" is 10% sell/buy but I'm trying to figure out how to best utilize the Split SAFE method that Tom and others have written about. Any advice on this would be appreciated.
3. Dividends. I'm still unclear on if it's better to reinvest dividends in shares or take the dividends and deposit it into the cash portion of my AIM program? I'll be trading entirely in a retirement account for now (roth and ira), so I don't know if that makes a difference?
4. Intervals. At one point Robert mentioned in his book that the AIM program might have better results if run on a 2 week schedule instead of a monthly schedule. Have any of you compared these results? What interval do you recommend for running an AIM program?
Those are the areas that I could use a little help in understanding. I have already learned a lot from you all just by reading the posts here each day. Thank you all for taking time to share experiences and wisdom.
I'm excited to make my first purchases this week and FINALLY begin my journey with AIM.
Kast
AI
