DrDoodle wrote:Some kind of rebalancing tool (but I admit that I don't have any idea what this would look like or how it would function; it might be impossible to develop a tool that's both powerful enough to be valuable, while also being flexible enough to meet the different needs of different users).
I've been writing to Vanguard CEOs for years, asking for an automatic rebalancing feature for IRAs, but they won't do it. ("Thank you for your interest in Vanguard . . .") There's never an actual explanation of why
they won't do it other than institutional inertia (they've never done it before), but it's my understanding that such a feature is already available for Vanguard employer-sponsored plans, so the capability is clearly there.
TIAA-CREF offers automatic IRA rebalancing on an annual basis, and at other times on request.
T. Rowe Price offers automatic IRA rebalancing every quarter for any IRA with a total value of at least $10,000. The customer specifies an asset allocation (25% to Fund A, 18% to Fund B, 15% to Fund C etc.), and then the rebalancing just happens, without further case-by-case intervention and the need for the customer to involve Price's telephone staff, until the customer discontinues the rebalancing feature or designates a new allocation.
I can see where automatic rebalancing might not be desirable in a non-retirement account (where almost any movement of monies is a "taxable event"), but it seems ideal for tax-preferenced retirement accounts. And I think that such an account feature would be entirely compatible with Vanguard's emphasis on choosing an individually appropriate asset allocation, sticking to it while tuning out the daily market/media "noise," and avoiding attempts to market-time or frequently trade. Just "set and forget," "put it on autopilot." But, regrettably, they won't do it.