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

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To: jas244 who wrote (5809)10/10/1998 3:17:00 PM
From: OldAIMGuy  Read Replies (1) of 18928
 
Hi JP, You can apply AIM to an existing 401 plan. You can manage what's already there with AIM and treat the new money with Dollar Cost Averaging or Mr. Lichello's Twinvest (DCA with a brain). This would be my suggested course.

If you want, you could divide up the existing 401 account into separate types of investments (bonds, large cap and small cap) and manage them each with AIM. You would still use either DCA or Twinvest for the future additions.

Twinvest lets you build a cash reserve while you add to your equity position. Then when it's big enough to justify using AIM on it, then you don't have to hunt up the cash, it's already there.

Certainly when shock to the market come along like we've had recently, it's nice to know the cash is there. It's also nice to be able to react in a positive fashion as prices fade.

Please let me know if I can be of any help as you get into it.

Best regards, Tom
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