Replies to post #38331 on A.I.M. Users Bulletin Board (AIMUSERS)

[ls7550]

AIM-Hi versus LD-AIM

AIM-HI 80/20 and classic AIM 50/50 are similar to just using 80/20 or 50/50. Decide which you prefer and go for the corresponding AIM.

AIM serves as a reminder of what you should be doing. Without AIM you might defer rebalancing to target weightings due to fear or greed. AIM will flag up what you should be doing and after several times of perhaps ignoring its advice you'll appreciate how you were wrong to do so and will gain faith in its recommendations.

AIM scales up more however. Rather than 50/50 periodic rebalancing it may sometimes be at 60/40 or at 40/60, usually timed in an appropriate manner - which over longer term cycles tends to push AIM ahead compared to its respective 80/20 or 50/50 manual rebalanced counterpart.

LD-AIM enables you to invest less in a single AIM. You start with some virtual shares instead of real shares and the value of the virtual shares can be invested in another AIM/elsewhere. Otherwise its more or less the same.

Vealies help avoid building up too much cash reserves. Otherwise a 80/20 could decline to being a 50/50 or less over a prolonged bull phase. Keeps you more aligned to what your original target allocation/weightings were.