Questions tagged [rebalancing]

Rebalancing is the process of realigning the weightings of a portfolio of assets by periodically buying or selling assets in a portfolio to maintain the desired level of asset allocation.

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1answer
148 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 + ...
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2answers
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Alternative to mint.com [closed]

I am looking to ditch Quicken so I can cut my dependence on the Windows platform and have my stuff available in the cloud. However, I'm finding a few features in mint.com lacking. The main ...
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0answers
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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 ...
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2answers
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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% for ...
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1answer
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Will the popularity of index funds cause a pricing bubble in the stocks that make up an index?

I can't help but notice the popularity of index mutual funds over actively managed funds. I think all the arguments are sound, but I have one worry: Index funds are run by buying the stocks listed ...
7
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2answers
14k views

Tax implications of 401k regular rebalancing vs a retirement target fund

This question is in the context of securities held within a 401k. As I understand it, one of the advantages of a retirement target date fund (like Fidelity's FFFHX, which I am in 100%) is that the ...
4
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3answers
155 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. ...
4
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4answers
351 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 ...
13
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1answer
469 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 (VEU)...
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6answers
493 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, elim­i­nat­ing ...
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1answer
129 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 ...
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2answers
1k 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 -- ...
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2answers
273 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 ...
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5answers
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Asset allocation software: Application or tool to help me rebalance my investment portfolio? [closed]

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, ...
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6answers
630 views

To rebalance or not to rebalance

I have not been able to understand the concept of rebalancing in investing. To me it's 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 ...