Should I Let My 401k Automatically Rebalance on 12/28?

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cnblure
Posts: 39
Joined: Tue Jan 05, 2016 9:45 pm

Should I Let My 401k Automatically Rebalance on 12/28?

Post by cnblure »

Hello Everyone,

Should dips in the market influence the decision on when to rebalance annually?
My 401k is scheduled to rebalance once a year. This year it is scheduled to do so on 12/28/2018.

My set allocation is
60% VSMPX- Total Stock Market Index
30% VBTIX- Total Bond Market Index
10% VTPSX- Total Stock International Index

After the contributions/market activity this year my 401k is distributed
VSMPX- 58.35%
VBTIX-32.55%
VTPSX- 9.1%

After yesterday (VSMPX -$3.00, and VTPSX -$2.60) do I need to do anything special for my 401k? Or is it best to just let it proceed as scheduled? I just turned 29 this month so nowhere near retirement.

Thanks!
goblue100
Posts: 1242
Joined: Sun Dec 01, 2013 10:31 am

Re: Should I Let My 401k Automatically Rebalance on 12/28?

Post by goblue100 »

Let it proceed as scheduled.
Financial planners are savers. They want us to be 95 percent confident we can finance a 30-year retirement even though there is an 82 percent probability of being dead by then. - Scott Burns
delamer
Posts: 10590
Joined: Tue Feb 08, 2011 6:13 pm

Re: Should I Let My 401k Automatically Rebalance on 12/28?

Post by delamer »

What is making you reconsider allowing the rebalancing?
BogleBoogie
Posts: 699
Joined: Tue May 13, 2014 11:15 am
Location: AK

Re: Should I Let My 401k Automatically Rebalance on 12/28?

Post by BogleBoogie »

cnblure wrote: Sat Dec 22, 2018 6:45 am Hello Everyone,

Should dips in the market influence the decision on when to rebalance annually?
My 401k is scheduled to rebalance once a year. This year it is scheduled to do so on 12/28/2018.

My set allocation is
60% VSMPX- Total Stock Market Index
30% VBTIX- Total Bond Market Index
10% VTPSX- Total Stock International Index

After the contributions/market activity this year my 401k is distributed
VSMPX- 58.35%
VBTIX-32.55%
VTPSX- 9.1%

After yesterday (VSMPX -$3.00, and VTPSX -$2.60) do I need to do anything special for my 401k? Or is it best to just let it proceed as scheduled? I just turned 29 this month so nowhere near retirement.

Thanks!
Stick with your IPS. It sounds like you have chosen to rebalance annually. I prefer to do a band (5%). I don't think either one is better, but if I had to pick one I suppose I could make an argument that yours entails less tinkering which studies show tend to be more favorable!
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