Market Cycle Investment Management (MCIM) reflects the unique strategies, procedures and disciplines documented in the books and articles of former professional investment manager and current investment instructor Steve Selengut, CEO/Consultant at Sanco Services Inc. and Senior Instructor at Kiawah Golf Investment Seminars.
: Where can I get an MCIM Portfolio?
You can develop one for yourself, after completing a course of study that you can sign up for at Kiawah Golf Investment Seminars or you may be able to obtain one through your financial professional.
: How many types of MCIM portfolios are there?
There are two groups of MCIM portfolios, with three general asset allocation formulas in each: Group one is for tax deferred portfolios auch as IRAs, 401(k), 403(b), Profit Sharing Plans, etc. and Group two is for all taxable portfolios. Investors can adjust the percentages according to their own preferences, but all equities must be IGVSI stocks, and all accounts must contain at least 30% in income securities.
- 70% IGVSI* Equities and 30% Taxable or Tax Free CEFs
- 50% IGVSI* Equities and 50% Taxable or Tax Free CEFs
- 30% IGVSI* Equities and 70% Taxable or Tax Free CEFs
* IGVSI is an acronym for Investment Grade Value Stock Index.
: Are there any account size or transaction restrictions?
MCIM accounts should be started with at least $300,000 in order to comply with strict Working Capital Model Rules about odd lots, diversification, etc. MCIM portfolios are excellent staging areas for retirement income portfolios. Once regular recurring income is needed, the portfolio can be "transitioned" into a retirement portfolio with a solid "base income" already in place.
: Who is former investment manager Steve Selengut?
Please click the "About Steve Selengut" tab at Kiawah Golf Investment Seminars.
: Where can I obtain information about the historical performance of MCIM methodology portfolios?
You need only to grasp the concepts and understand the methodology to make your light bulb come on --- it's a logical and disciplined approach that is easy to implement.
: Hypothetically speaking, why would an MCIM "mirror" portfolios be generally unsuitable in situations where regular contributions and withdrawals are contemplated?
The "mirror portfolio" is based on an up-and-running model portfolio of a specific asset allocation, but it isn't a live portfolio. There can be many individual accounts, of various sizes above (or below) the model, but with the same asset allocation. If an individual were to withdraw cash from (or add cash to) a portfolio, it would change his total Working Capital, and thus, the percentage of WC allocated to each position. Then, just for this account, a complete set of buy or sell transactions would have to be initiated to "re-balance" (I hate that term) the positions.
If you don't do the adjustments, you wind up with portfolios that never get fully invested or which run out of cash and can't continue to participate during the depths of a correction. The objective is to keep each portfolio in a "mirror" allocation to the individual position cost basis to total WC relationships in the model portfolio. All participants have the same percentage allocation, but account size, total WC, cost per share, and # of shares will vary.
The cost of the adjustments are onerous, so regular monthly retirement payments, or regular small deposits, would make the program untenable. With regular programmed contributions, a regular individually managed program (no "mirror" requirements) would be much more appropriate. This also holds true for retirement accounts with 30% or less invested in equities. There, the transaction activity is normally very low and better suited to a regular commission arrangement and a lower total management fee.
Growth is achieved by assuring that no more than 70% of the "base" income is withdrawn.
:How would I arrange for Mr Selengut to speak to my group about the Market Cycle Investment Management methodology?
You can contact him directly at 800-245-0494.
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