Are you rebalancing now?

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Are you rebalancing now?

Postby newkidontheblock » Sun Dec 30, 2012 4:08 pm

I usually rebalance our portfolio once a year around the last week of December or early January.
I don't pay attention to the stock/bond market performance when I rebalance.
Are you rebalancing now? Has fiscal cliff affected the timing of your rebalancing?
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Re: Are you rebalancing now?

Postby retiredjg » Sun Dec 30, 2012 4:13 pm

I rebalanced 2 or 3 days ago. Fiscal cliff motivated me to do it a few weeks earlier than "normal". Not that my 5% adjustment will make much difference if the market crashes.... :P
Last edited by retiredjg on Sun Dec 30, 2012 4:53 pm, edited 1 time in total.
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Re: Are you rebalancing now?

Postby livesoft » Sun Dec 30, 2012 4:15 pm

I tend to look to see if I need to rebalance on a RBD, so it's been awhile. Portfolio is well within tolerance bands.
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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Re: Are you rebalancing now?

Postby Sidney » Sun Dec 30, 2012 4:17 pm

I am right about at my target right now. No action needed.
I always wanted to be a procrastinator.
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Re: Are you rebalancing now?

Postby BHCadet » Sun Dec 30, 2012 4:17 pm

We rebalanced last week since we have to sell some security in our taxable account and want to take advantage of the 15% long term CG tax rate in 2012.
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Re: Are you rebalancing now?

Postby tomd37 » Sun Dec 30, 2012 4:45 pm

First time I have had to rebalance to get back to my AA in many years. Usually handle it with my RMD, but this year the balance was off more than usual and did not want to wait until next RMD late in 2013. It has been a good year for me though. Don't know what to expect after the news this afternoon. :annoyed
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Re: Are you rebalancing now?

Postby chaz » Sun Dec 30, 2012 4:49 pm

I rebalanced this month as I took my RMD.
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Re: Are you rebalancing now?

Postby midareff » Sun Dec 30, 2012 4:56 pm

Did a small rebalance inside a Roth a couple of days ago. Everything else in conventional IRa and taxable is inside bands.
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Re: Are you rebalancing now?

Postby pennstater2005 » Sun Dec 30, 2012 4:59 pm

Rebalance daily secondary to having a target retirement fund. Although I don't actually do anything, which is a good thing.
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Re: Are you rebalancing now?

Postby KyleAAA » Sun Dec 30, 2012 4:59 pm

I don't rebalance until after I've done my taxes anyway, so I guess I don't have to worry about it so much.
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Re: Are you rebalancing now?

Postby grabiner » Sun Dec 30, 2012 9:55 pm

I do my full rebalance in January, when I make my Roth IRA contribution. Since the Roth IRA is the only investment I make which can go to any asset class, I need to track my whole portfolio to see where it goes, and that is a natural time to adjust everything else that can be changed without a tax cost. (I won't sell anything in my taxable account to rebalance unless I am outside my rebalancing bands.)
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Re: Are you rebalancing now?

Postby Groundhog » Sun Dec 30, 2012 10:19 pm

I also rebalance in January after I make our Roth contributions for the year. We use Total Stock Market and Total International for our Roths. I rebalance using my TSP moving among F, C, S and I funds as needed.
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Re: Are you rebalancing now?

Postby FedGuy » Sun Dec 30, 2012 11:23 pm

Groundhog wrote:I rebalance using my TSP moving among F, C, S and I funds as needed.


No G? I thought half the benefit of the TSP was having access to the G Fund.
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Re: Are you rebalancing now?

Postby Default User BR » Mon Dec 31, 2012 2:57 am

newkidontheblock wrote:Are you rebalancing now? Has fiscal cliff affected the timing of your rebalancing?

I don't rebalance on a schedule. I have a spreadsheet incorporating Swedroe-style 5/25 rebalancing ranges. No asset allocations have indicated a need.


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Re: Are you rebalancing now?

Postby scubacat » Mon Dec 31, 2012 7:29 am

I am rebalancing now. My TSP will be rebalanced today and my IRA will be done in a few days when I make my 2013 contribution.
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Re: Are you rebalancing now?

Postby Groundhog » Mon Dec 31, 2012 9:07 am

FedGuy wrote:
Groundhog wrote:I rebalance using my TSP moving among F, C, S and I funds as needed.


No G? I thought half the benefit of the TSP was having access to the G Fund.


My wife is 100% G Fund in her TSP and I use the F Fund in my TSP. Just trying to mix things up a bit with G only returning 1.46% ytd.
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Re: Are you rebalancing now?

Postby livesoft » Mon Dec 31, 2012 9:15 am

I imagine the folks who are rebalancing now are pretty close to their desired asset allocation anyways, so any movement of money will be rather small.
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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Re: Are you rebalancing now?

Postby dianna » Tue Jan 01, 2013 12:28 am

FWIW, since we are still within the accumulation phase of our lives, we "rebalance" monthly with our contributions. We haven't been outside of 5% bands for awhile because of this. It will be interesting when one/both of us stop accumulating and we need to develop an iron stomach to tolerate the swings.
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Re: Are you rebalancing now?

Postby Whiggish Boffin » Tue Jan 01, 2013 12:53 am

I haven't hit my rebalancing bands since October 2011, though I've gotten close a few times, so -- no, I'm not rebalancing now.
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Re: Are you rebalancing now?

Postby nedsaid » Tue Jan 01, 2013 4:21 am

I have not rebalanced. Somehow 2-3 percent from bonds does not exite me.

Just checked my portfolio today. 2/3 stocks 1/3 bonds at age 53. A bit high in stocks at my age. My new money is going in at 60/40 stocks/bonds. I have been doing that for a long time.

In 2007, I was up to 72/28 stocks/bonds and got as low as 60/40 at the bottom in 2009. For about a year, all my new money went into stocks. I joked that the market did my rebalancing for me!!

I think about rebalancing for a while and look for an opportune time to pounce. Right now, stocks look cheaper than bonds and I don't think rebalancing into an expensive asset class is a good idea right now.

This might be heresy, I rarely rebalance. Maybe three times in 12-13 years.
A fool and his money are good for business.
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Re: Are you rebalancing now?

Postby Dandy » Wed Jan 02, 2013 12:31 pm

No - didn't have enough money in Money Market which I use to rebalance when at all possible. I don't usually affect existing investments when "buying opportunities" or "selling opportunities" occur. I understand the attraction of these opportunities to rebalance but it can easily lead me to quasi market timing when I don't use money targeted to rebalancing.

I am surprised that people choose the end of December to rebalance. So much goes on in December including tax loss harvesting, investment managers doing end of year window dressing of their portfolios, funds paying cap gains and dividends, year end bonuses etc. That is why I chose February
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Re: Are you rebalancing now?

Postby Johm221122 » Wed Jan 02, 2013 1:33 pm

Did not rebalance, only 1% off on fixed income and large cap.Small cap,Reits and international were less than 1% off
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Re: Are you rebalancing now?

Postby livesoft » Wed Jan 02, 2013 2:01 pm

S&P500 is about where it was back at the beginning of October and also around December 18th, so if you rebalanced then, you should not have to rebalance now. It almost seems like folks only have a memory for the past 3 days.
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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