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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: labestul who wrote (10458)	3/16/2000 8:47:00 AM
From: Bernie Goldberg	Read Replies (1) of 18929

Hi, I can't speak for all AIMers, but I can tell you what I do. Regarding commissions, interest and dividends: I do not use Newport to keep records of my investments. i use MS Money for that purpose. As far as AIM is concerned I don't pay any attention to commissions, Money Market interest or dividends. Every 6 months or so I examine the cash reserves in Newport and my MMF. If the Newport figure is smaller, and it always has been I subtract it from my MMF and decide what to do with it. I have sent it to my grandson's account, taken my lovely wife and myself out to dinner, made a trip to Denver. Sometimes it is all of the above. It really isn't important as I consider it a semiannual bonus. Regarding withdrawals: When you set up a new AIM account Portfolio Control represents the amount of $$$ that you wish to have invested in your security(ies). Tom has mentioned that he has on occasion started AIM programs with zero Cash Reserve. On these occasions you fund your Cash Reserve from sales until it reaches the desired level. This has absolutely no effect on Portfolio Control. If you started your AIM program with $14,000 in stock and not a dime in Cash Reserve your Portfolio Control would be 14000. Example: 1400 shares @ $10 =$14000; Cash Reserve=0; Portfolio Control =14000 Price of stock appreciates to $20 Newport recommends selling 560 shares at $20 This gives you 840 shares at $20 = $16800 Cash Reserve = $11200 Total Investment Value = $28000 Portfolio Control remains at 14000 even though you have doubled your money. Since I consider myself a long term investor as well as an AIM investor I consider selling shares only as a last resort or as an AIM recommended action. For that reason if I absolutely needed funds and had no other method of obtaining them I would make withdrawals from the Cash Reserve. If in the above example you needed $5000 for whatever purpose and withdrew it from Cash reserve that would not change the value of your shares. IMO that is all that Portfolio Control is concerned about. Hopefully, at some point in the future you would repay the loan to Cash Reserve in order to maintain your purchasing power in the AIM program. Mr. L. makes it very clear in his book that one should only consider AIMing with $$$ that were not going to be needed for at least 3 to 5 years. Hope this helps Bernie

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