**whether it's better to rebalance with each inflow, or DCA and wait for rebalancing.**(Please forgive & direct appropriately if this is already discussed!) Let's ignore taxes for the purposes of the question. Take the following example 5-fund portfolio:

30% VTI | Total US Market

10% AVUV | US SCV (small cap value)

20% VXUS | Total Intl Market

25% BND | US Bond Market

15% BNDX | Intl Bond Market

For those like me* with regular contributions, I can see at least two approaches:

- 1.
**DCA with periodic rebalancing.**Here I would dollar cost average each paycheck, i.e., amounts contributed to each fund/ETF are exactly the fixed proportions dictated by my desired asset allocation. This is done without regard to what has happened to the proportions of my assets, UNLESS rebalancing is triggered by either a) a specific among of time has elapsed or b) once my allocation has deviated by some predetermined threshold.**Example:**I simply contribute $1,000 from my paycheck in the specified proportions as**$300 VTI, $100 AVUV, $200 VXUS, $250 BND, and $150 BNDX.**

- 2.
**Rebalance with each inflow.**Here I would determine how much money should go to each of my assets in order to bring it in line with my desired allocation. Amounts contributed to each fund/ETF therefore depend on the current values of each asset, every time I contribute.**Example:**suppose my portfolio of $10,000 is currently at $3123 VTI | $1100 AVUV | $2109 VXUS | $2400 BND | $1268 BNDX. Adding $1000 will bring the total up to $11,000, which if apportioned according to my portfolio would partition as $3300 VTI | $1100 AVUV | $2200 VXUS | $2750 BND | $1650 BNDX. To rebalance with inflows and achieve those desired amounts of each, I'd contribute my paycheck as**$177 VTI, $0 AVUV, $91 VXUS, $350 BND, and $382 BNDX.**

Very grateful for any thoughts!

*35 years old, just beginning to accumulate, paid monthly and direct about 50% of each paycheck to my Roth, then HSA, then brokerage.