Its all about the math. First let me say that in his book Robert Lichello advises not to add new money regularly to a aim program, he was afraid the new money would upset aim's mechanism. He could not see the logic of adding new money at the same time you are selling stock, but he did not know of the idea of VEALIE ether. I am not sure if he had ever read of value averaging or not. In my opinion both VA and AIM, are variations of the old Constant Dollar plan, which is now known as the Constant Value plan. In Value averaging, the portfolio control is changed each month and stocks are bought or sold to make stock value equal portfolio control. Aim has a more complex buy sell rule, still I personally don't think AIM's mechanism will be effected. I have not TESTED this but if I were adding new money to aim I would add it at the same ratio as current Stock Value was to Cash.
Come see me at Systematic Investing group #board-966 lets talk formula plans.
