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3
votes
4answers
125 views
+50

A calculator that takes into account portfolio rebalancing?

I'm looking for a calculator that takes into account rebalancing when estimating total returns using historical data. For example, I'd input the following into the calculator: I have an initial ...
1
vote
0answers
27 views

Can I use Quicken asset class information to rebalance my portfolio?

Common wisdom is that a good low-effort investment strategy is to choose an asset allocation, then rebalance your portfolio to stick to it. I've been using Quicken Deluxe for this. Obviously it's ...
0
votes
1answer
53 views

What do mutual funds gain by being different from ETFs

This is what I understand on how ETS work vis-a-vis mutual funds: If I buy an ETF (SPY), then the ETF trust fund does not take my money and go out and buy the underlying stocks. I buy one share of SPY ...
0
votes
1answer
43 views

Why an ETF mirrors the underlying index on a day to day basis but not on a long term basis

Some ETFS like NUGT,DUST say that they replicate the performance of the underlying index on a daily basis. My first question is, do all ETFS do this, or only some? Also, why does it say that "not ...
7
votes
2answers
342 views

How (or is it necessary) to rebalance a 401k with only one index fund?

I put 100% of my 401k into an S&P index fund. Do I need to rebalance that, or is rebalancing only necessary when you have multiple asset allocations such as 80% in stock, and 20% in bonds and ...
1
vote
1answer
73 views

How should I allocate short-term assets in a rising-interest rate environment?

I'm looking to rebalance my portfolio and move some of my stock investments into lower-risk investments, largely because I want to use some of it in the not-too-distant future (say 2-3 years). How ...
2
votes
1answer
94 views

Is there any way to rebalance an investment portfolio while reducing/minimizing taxes?

Say you have a retirement goal of $1 million and reach it by investing a stock. If you want to rebalance and move this money to something safer, say bonds, will this exchange cost you capital gains + ...
1
vote
0answers
58 views

What's the cost of rebalancing when you buy through a fund supermarket?

I was reading about how to rebalance a funds portfolio and the main drawback seemed to be that you could incurred in more costs than you would if you just do it sporadically. I understand this ...
2
votes
2answers
2k views

How do 401k handle rate of return

This question has quite a few parts but answers to any part is certainly welcome : ) I'm having trouble finding an answer to what I think should be a simple question. When I see my 401k is up 10% ...
4
votes
3answers
140 views

Single investment across multiple accounts… good, bad, indifferent?

Are there any implications associated with investing in a single investment across multiple accounts? For instance, investing in 100 shares of Stock XYZ in both my Roth IRA and my Traditional IRA. ...
3
votes
4answers
293 views

How can I investigate historical effect of Rebalancing on Return and Standard Deviation?

There are very cool tools offered in this answer here. One of them is this here that allows you to see SD and return in rebalanced portfolio over longer time periods. Now I am trying to compare the ...
11
votes
1answer
156 views

For higher returns, put money in fewer or more ETFs? w/rebalancing in the equation

I'm evaluating my long-term investing strategy. I am somewhat aggressive and want to stick with ETFs. Scenario A 60% Vanguard S&P 500 Index ETF (VOO) 40% Vanguard FTSE All-World Ex-U.S. ETF ...
10
votes
6answers
405 views

How do I find an ideal single fund to invest all my money in?

Suppose I wanted to follow the advice on this blog post: An ideal bal­anced port­fo­lio would be a sin­gle fund. This forces you to look at your invest­ments as one big bucket, ...
6
votes
1answer
69 views

re balancing portfolio by only buying more or by both selling and buying under and over allocated assets?

For doing a re-balance of a portfolio, is it a better idea to just buy more of the under allocated assets or sell some over allocated assets to buy the under allocated assets. For my background, 28 ...
4
votes
2answers
505 views

classify investments in to different asset types

I am trying to do a portfolio re-balance starting this year. To do that I want to divide my investments into different asset buckets. I have chosen to use the following type of asset allocation -- ...
6
votes
2answers
239 views

Explain the details and benefits of rebalancing a retirement portfolio?

What exactly does rebalancing entail? Does it mean that if I originally had 50% in stocks and 50% in bonds and my stocks do amazingly well that I end up with 75% in stocks and 25% in bonds that I ...
9
votes
3answers
1k views

Asset allocation software: Application or tool to help me rebalance my investment portfolio?

I'm looking for an application that can help me rebalance my investment portfolio. I'm not looking for something that will suggest percentages for each asset class. I'm looking for something that, ...
7
votes
5answers
318 views

To rebalance or not to rebalance

I have not been able to understand the concept of rebalancing in investing. To me its a form of the gambler's fallacy. Let: s_n = stock price at time n s_{n+1} = stock price at time n+1 E[x] is ...