Rebalancing/Monthly Investing in Three-fund

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SteveO21
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Joined: Mon Apr 22, 2019 2:39 pm

Rebalancing/Monthly Investing in Three-fund

Post by SteveO21 » Mon Sep 09, 2019 8:15 pm

I invest monthly in a 403b which is comprised of three fidelity funds and their respective percentages:

FSKAX Total Market Fund 55%
FXNAX Total US Bond Fund 25%
FZILX Zero International Fund 20%

Because I use a brokerage link through fidelity to purchase these funds I am unable to set up auto investing as these funds are outside of my provided 403b funds or possibly I can and I haven’t figured out how at this point. My question is does it make any difference if I purchase the necessary quantity of mutual funds every month to bring each fund up to my investment allocation percentage or should I instead purchase these three funds proportionally and then rebalance every once in a while?

Thanks

bloom2708
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Location: Fargo, ND

Re: Rebalancing/Monthly Investing in Three-fund

Post by bloom2708 » Mon Sep 09, 2019 8:21 pm

Buy toward your desired mix of the funds each pay period.

As your portfolio grows the purchases won’t move the needle as much.

If you get off by 2% or X% you define then rebalance.
"We are not here to agree with you; we are here to provoke thoughtfulness." Unknown Boglehead

Lou354
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Re: Rebalancing/Monthly Investing in Three-fund

Post by Lou354 » Mon Sep 09, 2019 8:24 pm

I do the latter. I think it’s plenty close enough and it would be too much work to calculate my asset allocation every paycheck.

livesoft
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Re: Rebalancing/Monthly Investing in Three-fund

Post by livesoft » Mon Sep 09, 2019 8:33 pm

Sometimes one way is better; sometimes the other way is better; sometimes another way is better.

One won't know which of the ways would have been better until after one has already chosen one. That's another way of writing that one cannot know which way is better when you want to know.
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vipertom1970
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Re: Rebalancing/Monthly Investing in Three-fund

Post by vipertom1970 » Mon Sep 09, 2019 10:30 pm

do you pay a feed to trade ?

Topic Author
SteveO21
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Joined: Mon Apr 22, 2019 2:39 pm

Re: Rebalancing/Monthly Investing in Three-fund

Post by SteveO21 » Tue Sep 10, 2019 10:15 am

I do not assuming I’m trading fidelity funds.

Thanks all for the advice.

JimmyD
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Re: Rebalancing/Monthly Investing in Three-fund

Post by JimmyD » Tue Sep 10, 2019 10:28 am

I have virtually the same setup with my 401k.

Because we have other investment accounts, I user Personal Capital to aggregate our overall asset allocation and then every two weeks, when my 401k contributions hit the account, I buy whatever asset class I'm low in.

We don't have a massive investment balance yet, but when we do, I'd imagine we'll still have to do the occasional "off-cycle" re-balance in addition to the above.

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