Thread replies: 7
Thread images: 1
Thread images: 1
File: senior-gambling.jpg (301KB, 1600x1067px) Image search:
[Google]
301KB, 1600x1067px
My goal is 35% US Stock Fund, 20% International Stock Fund, 15% Bond Fund, 10% Gold, 20% Cash.
For those of you who are not degenerate gamblers (stock pickers), how often do you rebalance? Once a year?
>>
>>1543606
Rebalancing... that's cute.
>>
10% gold
Stopped listening right there
>>
>>1543702
>implying the value of gold hasnt mooned in the past decade
>>
>>1543606
I'm all in on gold
And lost tree-fiddy today
Now go fuck yourself
>>
>>1543606
The best way to rebalance is with new money. As you earn more investable cash, simply invest it in your existing asset allocations in amounts the bring your percentages back in line (or as close to it as your new money allows). Only if your allocations are substantially out of line (+/- 10% or more) should you engage in active rebalancing.
Why? Taxes.
Everytime you rebalance you're likely incurring taxes. That stunts your capital and hinders your compounding.
And if your funds are all in a tax-advantaged account, then you shouldn't even need to ask the question. There's no cost to rebalance an IRA or 401k, so you could do it daily if you wanted to spend that much time on it.
>>
>>1543606
Once a year
Thread posts: 7
Thread images: 1
Thread images: 1