Replies to post #300 on A.I.M. "In Depth" Q&A (AIMQ&A)

[Toofuzzy]

The changes were made after a long market upturn. Of course after 2000 you would have wished you started with more cash.

I use Aim so I dont have to time the market. Stick with the standard settings, 50% stock, 50% cash, 10% buy and sell safe, and 5% min buy.

Regarding what to own. Individual stocks can go to zero, use ETFs or mutual funds instead.

I dont know if you are aware that in order to have a $500 min trade, you need to start with $10,000 stock and $10,000 cash. Ultimately you want to own everything but if just starting out maybe a s+p 500 fund and a money market account. Later on you can add small cap, foreign, REITS, and then a long bond fund when rates peak.

Just my thoughts
Toofuzzy

[OldAIMGuy]

Welcome KH, I see Toof has already replied to your question.

Over on the main AIM topic board you'll find something called the v-Wave. It helps one to focus on an appropriate cash reserve amount for either diversified investments (broadly based mutual funds, etc) or individual company stocks. The two have generally different risk levels and hence different starting and ongoing cash reserve requirements.

Mr. L used a "One Size Fits All" approach to cash. The v-Wave is a reasonably successful attempt to improve the fit over his approach.

As far as stocks or funds, the world is much changed since the original AIM manuscript was published. AIM will help any investment given enough time. Diversified mutual funds have lower volatility than do business sector exchange traded funds and lower yet than individual company stocks as a general rule. AIM likes healthy and profitable volatility capture.

So, much depends upon the makeup of your nest egg. If it is substantial, you can divide it into many more AIM managed pieces than if it's just a starter AIM account.