Rick Ferri and Three Fund Portfolio - Rebalancing?

[hotajax]

Does Rick recommend rebalance, or is it truly a lazy portfolio and you, the customer, are really hands off?
I cannot find any reference to rebalancing or not rebalancing "lazy" portfolios.

[retired@50]

Does Rick recommend rebalance, or is it truly a lazy portfolio and you, the customer, are really hands off?
I cannot find any reference to rebalancing or not rebalancing "lazy" portfolios.

Rick's core 4 portfolio is mentioned in the lazy portfolio wiki page.

Rick stresses that the exact allocation percentages aren't important, to the nearest 5% is fine

https://www.bogleheads.org/wiki/Lazy_portfolios

So, it sounds to me like within 5% of your initial target of stock/international stock/bonds would be suitable.

Regards,

[Arboecars]

Reasonable minds will certainly differ about the direction of the market.

For perspective, you may wish to watch the highly recommended PBS program called, PBS Frontline: Age of Easy Money (Full Documentary)about the current financial situation, to gain some perspective on the economy.

It is sober, free, informative, and non-political.

https://www.youtube.com/watch?v=EpMLAQbSYAw

[retired@50]

Reasonable minds will certainly differ about the direction of the market.

What does this have to do with re-balancing a lazy portfolio?

Regards,

[BitTooAggressive]

Reasonable minds will certainly differ about the direction of the market.

For perspective, you may wish to watch the highly recommended PBS program called, PBS Frontline: Age of Easy Money (Full Documentary)about the current financial situation, to gain some perspective on the economy.

It is sober, free, informative, and non-political.
https://www.youtube.com/watch?v=EpMLAQbSYAw

Did you post on the correct thread?

[retiredjg]

Does Rick recommend rebalance, or is it truly a lazy portfolio and you, the customer, are really hands off?
I cannot find any reference to rebalancing or not rebalancing "lazy" portfolios.

The term "lazy portfolio" means different things to different people. Whatever one's definition, I don't think "completely hands off" is suggested by many. To my knowledge, Rick Ferri has never suggested such a thing.

If you want to maintain a certain level of risk, rebalancing is required from time to time.

There are some good lazy ways to achieve this. For example, one could use target funds or asset allocation funds (these rebalance themselves0. Or one can rebalance once a year. Even rebalancing within 5% bands takes little effort most of the time.

From the "lazy portfolio" wiki page posted above...."Lazy portfolios are designed to perform well in most market conditions. Most contain a small number of low-cost funds that are easy to rebalance."

[dbr]

I don't think "lazy" means that you just go away and forget everything for 20 years. That would be a Rip van Winkle portfolio which is not recommended except in the case of bourbon where the 23 yr is recommended.

It doesn't make any sense to use an asset allocation method of managing investments and then not rebalance. How often to rebalance is a different question to which the 5% bands approach is reasonable.

As to practical, it is a big mistake to not stay involved with your accounts to be up to date on access, on changes that might come down from the management, and to verify there is no mistake, hacking, or other untoward event. There are even reports of very rare instances of people's assets escheated as abandoned assets if there is no contact for long enough.

[hotajax]

A man who knows Bourbon. I like that.

Instead of investing in stock, acquiring a quantity of Rip Van Winkle might be better than stocks. A buy-and-hold approach would do well.

[22twain]

Is Rip's bourbon as good as his pappy's?

[Rick Ferri]

Does Rick recommend rebalance, or is it truly a lazy portfolio and you, the customer, are really hands off?
I cannot find any reference to rebalancing or not rebalancing "lazy" portfolios.

It depends on whether it's a taxable account or non-taxable.

Yes, for non-taxable, usually covered by new contributions or withdrawals. Otherwise, once per year is fine.

Not much for taxable unless you can do it while tax-loss harvesting or using new cash.

[hotajax]

Thank you.

[Johm221122]

Reasonable minds will certainly differ about the direction of the market.

For perspective, you may wish to watch the highly recommended PBS program called, PBS Frontline: Age of Easy Money (Full Documentary)about the current financial situation, to gain some perspective on the economy.

It is sober, free, informative, and non-political.

https://www.youtube.com/watch?v=EpMLAQbSYAw

You said in another post you don't recommend market timing, so exactly what is your advice here? I'm missing the point because if you're not recommending market timing, what exactly are you recommending?