IMS INCOME and CONSERVATIVE PORTFOLIOS
IMS Income qualifies as a conservative investment.
The minimum to establish an account is $100,000.
IMS Income has provided an upside dimension to conservative investing (the blue line) .
The level of volatility, or risk, is closer to that of the short-term bond market (the gold line) than it is to that of the stock market.
The IMS Income program invests in several no-load high-yield mutual funds. IMS Income is expected to substantially reduce the risk of the high-yield bond funds by investing periodically in the money market.
Conservative investors can diversify their portfolios by investing a percentage in four equity mutual funds.
Five-Funds Growth Program
IMS selects five no-load growth mutual funds that, together, are expected to perform close to that of the S&P 500 Stock Market Index over multiple market cycles. The five mutual funds in the portfolio are selected from among over 6,000 mutual funds and correlated to match the following funds and objectives:
15% Nasdaq/OTC Fund Objective
40% The S&P 500 Stock Average
15% Mid-Cap Growth Objective
15% Dividend Growth Objective
15% Balanced Fund Objective
IMS monitors the five equity mutual funds and makes a change only if necessary to maintain the integrity of their objectives. The five mutual funds are rebalanced each quarter to their 25% positions. The management fee associated with IMS Income is 1.2% per year, and the management fee associated with the five mutual funds is 0.4% per year.
Custodial Account Options
One Investment Account
There are three pre-established combinations that require one Investment Account.
IMS Income 100% – Five Growth Mutual funds 0%
IMS Income 80% – Five Growth Mutual funds 20%
IMS Income 60% – Five Growth Mutual funds 40%
Two Investment Accounts
The establishment of two Investment Accounts allows an unlimited number of combinations.
IMS Income 88% – Five Growth Mutual funds 12%
IMS Income 74% – Five Growth Mutual funds 26%
IMS Income 53% – Five Growth Mutual funds 47%
The owner can request an adjustment in the percentages by e-mail.
Bear Markets and Sleeping Well
IMS recommends you anticipate 50% bear market declines when determining the amount to invest in equity mutual funds. Begin by considering the decline you can accept for your total portfolio. Then review the following examples to help with your final decision.
Invest 10% in equity mutual funds if you are comfortable with a temporary portfolio decline of 5%.
Invest 20% in equity mutual funds if you are comfortable with a temporary portfolio decline of 10%.
Invest 30% in equity mutual funds if you are comfortable with a temporary portfolio decline of 15%.