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Conrad

06/08/10 10:38 PM

#31960 RE: lostcowboy #31956

LC, I think I know why!

The periodic lay-away-plan for which your systems are developed are meant for investors that may at most be able to put small amounts away as savings. Such plans are quite universally available although they lack the acceleration feature of the AIM-concept. As you remember we discussed years ago the idea of working together on formalizing the marketing for such lay-away-plans.

I even developed a Vortex variant called PremiVest. In this the lay-away investments would be accelerated + or - much stronger than any of your systems. . .I used the buy-sell aggression factors to make for example from a base investment increment of $ 100 a trade of $ 150 or $ 200 as prices dropped and say $ 25 as the prices increased, to possibly a sell of $ 25 or $50 or even more for a steep rise.

The resultant is that PremiVest Method is not any simpler than the standard Vortex Method that requires say $ 10000 to work properly. Typically the people on this forum would tend to invest $ 10000 or more per fund. If one only has, on the average, $ 100 to invest per month then they would not be interested much in spending a lot of time on their AIM-Lay-Away- Plan Management. Investing $ 100 per month does not justify the time spend on a complex system. I never got any inquiries on the PremiVest option, and even I ceased to be interested in it so I am not selling it now.

My explanation is that AIMers have generally "loads" of money and time to invest compared to people that can just manage to set $ 100/month aside as savings. . .they do not want to spend time on investing at all. . . . generally. . . they already have Automatic Investment Management: as prices are low they get more units for their $ 100 and the fact that they get less units per $ 100 at high prices does not bother them.
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AIMster

06/18/10 2:00 PM

#32009 RE: lostcowboy #31956

I was wondering if anyone has used the AIM formula with periodic investing? If no, then why not?

This idea has been one of my issues with AIM as I'm still in the workforce and am trying to save what I can each month.

Lichello designed AIM to run as a closed-loop system. Start it up and it feeds itself from buying and selling. Lichello did allow the occasional "Christmas bonus" addition, but periodic investing undermines the logic of AIM. With AIM one waits for it to decide when to buy or sell, adding money all the time might have you buying more at the same time AIM is getting ready to tell you to sell! Counterproductive.

I suppose the best thing to do with a periodic cash flow would be to use Synchro or Twinvest to build up a position until it becomes large enough to convert to an AIM machine. Then repeat the process.

Best,

AIMster
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Toofuzzy

06/20/10 12:21 PM

#32024 RE: lostcowboy #31956

RE Periodic Investing

One way to do that is to save up cash to start one new AIM investment at a time.

So maybe start with a large cap ETF first, then a small cap, then a Foreign fund, then a REIT, by then you are probably getting older and might want a long term bond fund.

Toofuzzy