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Lichello's AIM comes of age in the era of tax-deferred investing
on October 18, 2006
Now that we've entered an era where vast portions of the public are involved with stock ownership through mutual funds held in tax-deferred accounts this money management system looks better and works better than it may have for ownership of individual stocks in taxable brokerage accounts. The new mutual fund investors are making the mistake of not raking in profit as they go, losing opportunities for better long-term yields, and this classic method can solve that problem.
The legions of AIM students have discovered over time some of the defects in Lichello's original AIM formulas, such as holding on to too many shares as share prices appreciate in the stratospheric ranges of 200+%, but the beauty of applying his classic system to nontaxable mutual fund investing is that it doesn't matter as much--the built-in diversification of funds, the free switching factor, and the long-term view of retirement accounts cushion against most systemic distortions or market downturns while using this method.
The clever investor may soon realize that there are simpler ways of applying progressions to decision-making about how to harvest upside profits or do downtrend buying, but to novice investors classic AIM in its 3 flavors works very well indeed for the new retirement accounts.
For ideas on how to use Lichello's AIM-like thinking with payroll deduction in addition to the TWINVEST described in this book, consult his other work on SYNCHROVEST.