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

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To: OldAIMGuy who wrote (6721)1/28/1999 6:50:00 PM
From: OldAIMGuy  Read Replies (1) of 18928
 
A part of Mr. Lichello's book that's overlooked sometimes is the section on TWINVEST. It's a marvelous substitute for Dollar Cost Averaging. You'll find the write-up in Chapter 15 of the AIM book.

Recently I've received quite a bit of correspondence on the use of AIM with 401K's and IRA's. It seems to me that any thrift plan where regular amounts of money are going to be added would do well to use Twinvest over DCA.

Once the accounts have grown in size to an AIM "critical mass" then they can be switched to AIM accounts and the new additional money can flow to a new investment. This way we can benefit from rational accumulation as well as management afterwards.

Besides IRA's and 401K's, there's also the possibility that we may have children or grandchildren to whom we may want to give money over time. This giving may be into a UTMA or UGMA account. Again Twinvest is a great way to apportion those gift dollars.

I've prepared an example using the same data base that generated the AIM comparison graphs. It shows 17 years of $500/quarter being added to an IRA account. This new web page can be viewed at

execpc.com

If you started saving the same amount for "junior's" college education when he/she was born, you'd have more than enough to pay for a handsome education come his/her 18th birthday.

Best regards, Tom

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