Replies to post #46283 on A.I.M. Users Bulletin Board (AIMUSERS)

[OldAIMGuy]

Hi John, Re: 3 piece portfolio (similar to a "Permanent Portfolio)....

There are actually 4 pieces in it with the 4th being Cash. It can have each ETF as a separate AIM engine with the cash moving between engines depending on markets.

My other idea was to have 30 percent in each ETF to start and 10 percent in cash. Then it would get rebalanced when weights shifted from the starting weights. This isn't AIM but could have much of the same benefits. A friend is doing this with VUG, VNQ, IAU plus cash. So far in about 2 years there have been two rebalances I think. Dividends are collected in the cash column for the rebalance activities. To date the additions to the ETFs have all been done from Cash and no sales have been made. It's not been "live" for very long so the overall success is yet to be seen. Dividends fattened the cash pot enough to fund the rebalance activity.

Thank Clive for lots of study of Permanent Portfolio ideas.

Happy Thanksgiving,
OAG Tom