Hi Allen, I’m only using incremental PC on ETFs not with individual stocks. Also I have a few closed end funds that I no longer like and am not increasing the PC with those either. I increase by 10-20 % depending on the ETF. Here are some thoughts on this:
The more diversified the ETF the more it makes sense to increase the PC by the 6-8% increase in the general market in the long run.
When a stock moves up and down, with each buy AIM increases the PC anyway so there already is a bull market bias in AIM as long as some buys take place.
I increase my PC to avoid selling if I already have enough cash, and it’s easier and more automatic than Vealies.
I use high increases up to 20% in ETFs I want to increase when my cash position is too high. So today I had buys in SCHA and SCHX with both having 20%/year PC increase settings. By classic AIM I would not get these buys. It’s just another way of buying on dips. Both of these ETFs are broadly diversified and I’m confident that in time they’ll move back up. I would never do this with individual stocks.
I read Tom’s idea of increasing the PC by inflation rate. In my mind such an increase is too small to be worth the trouble.
It also depends on your particular circumstance. For instance if you’re retired and need the cash, you may not want to increase PC, on the other hand if you have income your cash position is growing it makes more sense then.
Adam
News 
Market Data 
Discover 
