Bogleheads

[corner559]

I was curious as to how often people rebalance their portfolios and why? I currently do so annually but have begun rethinking that as my international exposure goes out of whack more than 10% of what I've planned in this volatile market.

I'm torn now between staying the course and trying to take advantage of the good values in certain sectors now by reallocating before my regularly planned rebalancing at the end of the year.

What do you think advantages are to rebalancing less frequently vs. more frequently or even basing it on how far off kilter your allocation is from your plan?

[AThiker]

I don't know much (about anything except hiking), but I figured I'd vote and share. I rebalance whenever I'm more-than-5%-but-less-than-10% off from my target allocation. I haven't picked a specific number because when I can actually rebalance depends on when I have enough $$, time, and motivation to do so. So far so good, and I've even been able to keep my feelings/fears/greed out of it and stay the course.

[BradMajors]

I never sell to rebalance. I take all distributions and new money and invest it in areas which are currently underweighted.

[corner559]

[livesoft]

A similar poll:
http://www.bogleheads.org/foru....hp?t=24251

I reblance based on ranges or bands. But I don't do this "whenever" it is out of whack. I look often and rebalance based on market timing considerations.

[sewall]

I have rebalance bands but that isn't the only consideration. I try to rebalance with new money (not always). I watch my holdings more during more volatile markets. I also take a "convenience" approach. I really only look at my holdings vs. bands when I have both the time and the funds to do some rebalancing, but not less frequent than twice per year. It's a pretty loose and sloppy system but it fits my life at the moment and is better than nothing.

[corner559]

Thanks all for the replies and link to the other thread on this topic. Helpful advice from fellow Bogleheads as always.

I will be rebalancing my portfolio this week instead of waiting for my traditional year end and crossing my fingers along side everyone else that the bottom is near.

[choozm]

You can still stay the course by ignoring the out-of-whack allocation till your desinated rebalancing time. -- calendar based rebalancing method.

[Tall Grass]

Ditto...
_________________
"I am less interested in the return on my money than the return of my money."
- Will Rogers

[corner559]