Replies to post #36352 on A.I.M. Users Bulletin Board (AIMUSERS)

[Toofuzzy]

Don't add new cash to an existing account. Save up enough money to start it at a reasonable level or use LD AIM to start and ignore that you are buying new stock till it is not LD AIM anymore.

Save up and use new money to start a NEW AIM account. Since this is small cap, maybe large cap, foreign, REIT, or Bond

Minimum size for an AIM account should be $10,000 stock so trades are greater than $500

Not always
Toofuzzy

[OldAIMGuy]

Hi B2, Re: Tax differed account additions................

Why not use Twinvest? It adds appropriately to both cash and stock each month(Quarter, etc) and when it reaches a size to justify AIMing, just flip the switch to AIM. Then start a new Twinvest in the next area of the market in which you want to invest. Let it build to AIMable size and flip the switch. Etc.

......Or start multiple Twinvest accounts at the beginning and divide up the periodic addtions between them.

Best regards, Tom

[lostcowboy]

Its all about the math. First let me say that in his book Robert Lichello advises not to add new money regularly to a aim program, he was afraid the new money would upset aim's mechanism. He could not see the logic of adding new money at the same time you are selling stock, but he did not know of the idea of VEALIE ether. I am not sure if he had ever read of value averaging or not. In my opinion both VA and AIM, are variations of the old Constant Dollar plan, which is now known as the Constant Value plan. In Value averaging, the portfolio control is changed each month and stocks are bought or sold to make stock value equal portfolio control. Aim has a more complex buy sell rule, still I personally don't think AIM's mechanism will be effected. I have not TESTED this but if I were adding new money to aim I would add it at the same ratio as current Stock Value was to Cash.