[Poll] How often do you re-balance?
[Poll] How often do you re-balance?
To keep it simple, I have been DCA using a fixed ratio between 3 funds for many years and rarely re-balance. As stocks performed better than bonds, my stock weight has increased over time.
However, many people suggest one should re-balance often. Here's one example: http://www.investopedia.com/articles/st ... stakes.asp #4.
I am curious how often you re-balance. If it depends on the account, for example, re-balancing retirement account but not taxable account, then consider your largest account.
However, many people suggest one should re-balance often. Here's one example: http://www.investopedia.com/articles/st ... stakes.asp #4.
I am curious how often you re-balance. If it depends on the account, for example, re-balancing retirement account but not taxable account, then consider your largest account.
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Re: [Poll] How often do you re-balance?
I rebalance by:
1: new contributions
2: subjectively based on how deviated I am from target
1: new contributions
2: subjectively based on how deviated I am from target
Stay the course. If you can't resist greed, and fear is proven to be 2x as strong, you are doomed as an investor.
Re: [Poll] How often do you re-balance?
Balance bands.... mechanical process.
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Re: [Poll] How often do you re-balance?
I picked the last option; however, I don't have firm thresholds so for me it's not a completely quantitative process. I use new contributions to, in a sense, continually rebalance, if you want to look at it that way. I also consider myself on somewhat of a glide path moving towards a slightly more conservative position over time.
Don't do something. Just stand there!
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Re: [Poll] How often do you re-balance?
Essentially with each paycheck (biweekly) as I have set my 401k contributions to be 100% fixed income for a couple years now then about once a month I check the overall allocation to see if anything is out of range (5/25 rules) and if there is any new money to invest.
Re: [Poll] How often do you re-balance?
I don't re-balance at all as I have balanced funds only. They do it.
Unless you try to do something beyond what you have already mastered you will never grow. (Ralph Waldo Emerson)
Re: [Poll] How often do you re-balance?
I update my spreadsheet every 6 months and rebalance if outside of my bands.
- pennstater2005
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Re: [Poll] How often do you re-balance?
Same.Sheepdog wrote:I don't re-balance at all as I have balanced funds only. They do it.
“If you think nobody cares if you're alive, try missing a couple of car payments.” – Earl Wilson
Re: [Poll] How often do you re-balance?
I use bands with the added rule that I can only rebalance any given asset class once a year. So once a buy or sell action is caused by exceeding a band, I'm done for that particular action for a year.
Steve |
Semper Fi
Re: [Poll] How often do you re-balance?
I don't rebalance at all. So far I have just directed new investments (annual IRA contributions primarily) into one asset class or another and maintained my target AA of 90-95% stocks. However now my portfolio is big enough that new contributions aren't sufficient to move the needle much, so I need to establish a new plan. I'm at 96% stocks now and am debating selling some and buying bonds to get closer to 90%. I feel like I am more likely to just rebalance whenever the ratios get skewed, not based on the calendar.
"An investment in knowledge pays the best interest." - Benjamin Franklin
Re: [Poll] How often do you re-balance?
acegolfer, you are going to get this figured out eventually. Good luck!
I tend to rebalance into something at the lowest price of the year and to rebalance out of it at the highest price of the year. It works like a charm.
I tend to rebalance into something at the lowest price of the year and to rebalance out of it at the highest price of the year. It works like a charm.
Re: [Poll] How often do you re-balance?
Each December with my RMD.
Chaz |
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- Aptenodytes
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Re: [Poll] How often do you re-balance?
Just alter your DCA so that the new contributions go into your bond fund. Once you catch up to where you want to be, check in every few months to see if you are too heavy in stocks or bonds, and adjust the DCA appropriately.
Your portfolio is a boat you can steer while asleep, if you are willing to wake up a few times a year to nudge the tiller a bit.
Your portfolio is a boat you can steer while asleep, if you are willing to wake up a few times a year to nudge the tiller a bit.
Re: [Poll] How often do you re-balance?
Thanks for your advise. That will work over time, if one is a true 80/20 investor.Aptenodytes wrote:Just alter your DCA so that the new contributions go into your bond fund. Once you catch up to where you want to be, check in every few months to see if you are too heavy in stocks or bonds, and adjust the DCA appropriately.
Your portfolio is a boat you can steer while asleep, if you are willing to wake up a few times a year to nudge the tiller a bit.
But I'm not committed to 80/20 ratio that I started with. It was just a starting ratio many years ago. I just keep it simple and let it ride even in up/down turn. I'm in the minority who answered less often than yearly (rarely).
Re: [Poll] How often do you re-balance?
Need to be able to answer more than one option.
New contributions keep nudging towards target, but on rare occasion that is not enough and I sell/buy to rebalance.
New contributions keep nudging towards target, but on rare occasion that is not enough and I sell/buy to rebalance.
We live a world with knowledge of the future markets has less than one significant figure. And people will still and always demand answers to three significant digits.
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Re: [Poll] How often do you re-balance?
Personally I consider that to be rebalancing.Meg77 wrote:I don't rebalance at all. So far I have just directed new investments (annual IRA contributions primarily) into one asset class or another and maintained my target AA of 90-95% stocks.
- Cut-Throat
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Re: [Poll] How often do you re-balance?
Ditto!.... I am 100% in the Vanguard Target Retirement Income Fund.Sheepdog wrote:I don't re-balance at all as I have balanced funds only. They do it.
The Vanguard Elves do it for me.
So, I didn't answer the Poll.
Re: [Poll] How often do you re-balance?
A typical response for a number of posters most likely the youngster's among us.Aptenodytes wrote:Just alter your DCA so that the new contributions go into your bond fund.
Two comments:
1) Adding new contributions to an underweight asset class is balancing not re-balancing.
2) As one gets older and has a larger portfolio balancing by new contributions or withdrawals for us old folks , is often not enough to correct for a typical 5% band correction let alone a 20% market correction.
A scientist looks for THE answer to a problem, an engineer looks for AN answer and lawyers ONLY have opinions. Investing is not a science.
Re: [Poll] How often do you re-balance?
I voted that I use bands, but I guess technically you could also say bi-weekly, because all new contributions go to the asset class most in need of a boost, which doesn't change that often. The bands get triggered very, very rarely.
Re: [Poll] How often do you re-balance?
I re-balance several times a year when my asset allocation is off track.
Re: [Poll] How often do you re-balance?
i rebalance daily in my tax deferred accts - or i assume vanguard does, because i use LS and target retirement funds, and they maintain their allocation -- this isn't an option in the poll
Re: [Poll] How often do you re-balance?
I rebalance by redirecting my monthly direct deposits.
Re: [Poll] How often do you re-balance?
My largest account is a rollover IRA which is currently 100% invested in the Vanguard Wellesley Income Fund, so the answer is either daily or never. There was no daily rebalancing option so I voted for less often than yearly.
Re: [Poll] How often do you re-balance?
The best way to re balance is via adjusting your contributions. Alas, no more contributions in retirement.
My target date to rebalance is once a year. However, I hate to move large amounts of money at one time. So, in 2013 for example, I did some minor re balancing from equities during the year as allocations got near or above target. I just worry about the equity to fixed income allocation during the year. So far this year I have made no changes.
I also have some equities in my IRA so I never had to incur taxes to re balance.
When the once a year date comes I look at all the equity vs fixed income total and make sure all the sub allocations are within their bands. I also calculate whether I have enough safe investments (short term bonds/CDs etc.) to last me to age 90.
My target date to rebalance is once a year. However, I hate to move large amounts of money at one time. So, in 2013 for example, I did some minor re balancing from equities during the year as allocations got near or above target. I just worry about the equity to fixed income allocation during the year. So far this year I have made no changes.
I also have some equities in my IRA so I never had to incur taxes to re balance.
When the once a year date comes I look at all the equity vs fixed income total and make sure all the sub allocations are within their bands. I also calculate whether I have enough safe investments (short term bonds/CDs etc.) to last me to age 90.
Re: [Poll] How often do you re-balance?
so far have been balancing by new contributions only ( so bi-weekly?)
My plan is to re-balance once a quarter should equities swing enough to make it necessary - the 401k snail-mail report would be my reminder
My math says a 25% swing in equities will be needed to trigger that, so doubt it would happen anytime soon.
My plan is to re-balance once a quarter should equities swing enough to make it necessary - the 401k snail-mail report would be my reminder
My math says a 25% swing in equities will be needed to trigger that, so doubt it would happen anytime soon.