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I don't need funds at this time. Then there's nothing to do. If the strategy is "buy and hold" then you keep holding. When you need capital you assess your allocations and potentially sell some of this position. If you think you have allocation issues now, then the decision to reallocate anything would have to include an assessment of all your assets (...


2

I doubt that you will find 50 years of free historical data data online. There are a number of data providers that have been around for a long time - Thomson Reuters, Bloomberg, CSI Data to name a few. I have subscribed to Thomson Reuters for equities for 25+ years and their data currently goes back to 1991. I would assume that the index data ...


2

In the simplest case, let's say I need to pay you $100 in 10 years. If I buy $100 face value of a zero coupon treasury bond maturing in 10 years, I would be able to use the payment from the bond to pay you back. The date I would receive payment from the treasury (maturity) matches the date I owe you. No matter what interest rates do between the time I ...


1

This is a valid criticism of a simple (static-weight) rebalancing strategy. It can reduce portfolio volatility but also reduce expected return. A realistic case would be allocating by country where one country's government permanently collapses (gradually enough for you to keep averaging down on soon-to-be-worthless securities). The real issue is where the ...


1

Buying the S&P 500 Index is a wise decision. It is a benchmark and you are basically buying the whole market. Not sure what you mean by 'considerable returns', but the average return for 3, 5, 10, 15 years is 9%, 8%, 13% and 7.6% respectively. This data is from Morningstar. To expect much more than about an 8% return over the long haul is probably ...


1

The greater benefit long term is “not” taking gains in same year unless you specifically want to sell those shares to get out of the position. You can use up to $3000 in losses against ordinary income. And in a different year, take advantage of the long term cap gain rates. To be clear, I am suggesting you avoid taking a loss to offset a gain that ...


1

I would not realize gains unless: You believe that it's time to exit a fund for defensive reasons You want to rebalance your allocation If you are having dividends reinvested, be aware that it can trigger a wash sale violation when a loss is realized. Either work out the ex-dividend dates and avoid the 60 day window around the loss date or turn off the ...


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