Took some off the table today

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dickenjb
Posts: 2941
Joined: Tue Jan 05, 2010 1:11 pm
Location: Philadelphia PA

Took some off the table today

Post by dickenjb » Mon Mar 26, 2012 8:03 pm

Well, actually I could see that today's action was going to take me significantly over my target of 60% for equities - so exchanged two Coverdells at Vanguard from 100% TSM to 100% TBM. Also exchanged $60K in S&P500 Index in my FIDO 401(k) to Stable Value. All in all sold $100K of equities, goal being to get closer to my 60% target allocation and lock in profits in the Coverdells as my older boy starts college in the fall.

Any body else using today's run ups as a catalyst to rebalance?

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mephistophles
Posts: 3110
Joined: Tue Mar 27, 2007 2:34 am

Re: Took some off the table today

Post by mephistophles » Mon Mar 26, 2012 8:06 pm

I never buy, sell or reallocate based on any day's runup or rundown in prices. Best to avoid short term market flucuations of a day, week or months. I look at mine once a year.

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bob90245
Posts: 6511
Joined: Mon Feb 19, 2007 8:51 pm

Re: Took some off the table today

Post by bob90245 » Mon Mar 26, 2012 8:10 pm

Tomorrow, take the rest off the table. Stocks are no place for money you need in the short term (college this fall).
Ignore the market noise. Keep to your rebalancing schedule whether that is semi-annual, annual or trigger bands.

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