Asset Allocation Speadsheet - suggestions, please

[Htown Harry]

All the necessary rebalancing occurs in a 401(k) plan which has all the index funds (US, int'l, bond, small) available.

Thus, one can look and solve the puzzle in about a minute.

Then I have a summary by type of asset in lower half, and calculate how far I am off target.

Seeing another example is a big help. Thanks target2019.

One difference in your spreadsheet from some is it doesn't include fields and formulas to recommend specific rebalancing dollar amounts by account or holding. Instead, it appears you prefer to just use the deviation from the target percentages as a filter, then figure a set of rebalancing transactions off-spreadsheet. (Or maybe you just play with the dollar value or share data to try what-ifs that produce revised holding percentages that are in balance with your target allocation percentages?)

So let's see if I really understand LOL's "don't sweat the pennies" rebalancing approach correctly, as applied to target 2019's spreadsheet...

If today was rebalancing day, LOL! would sell about 1.7% portfolio value of the overweighted small / midcap fund in the 401k account to get that holding and the U.S. stock category back to target. The proceeds would then be spent on the fund in the 401k that is rough equivalent of Vanguard Total Bond, which gets the bond category to target. Then you would make a slight bookkeeping adjustment to add a 1.7% target weighting to your 21st holding and a similar target reduction to Vanguard Total Bond.

Everything else is within 1%, so you are done.

 

[target2019]

Seeing another example is a big help. Thanks target2019.

One difference in your spreadsheet from some is it doesn't include fields and formulas to recommend specific rebalancing dollar amounts by account or holding. Instead, it appears you prefer to just use the deviation from the target percentages as a filter, then figure a set of rebalancing transactions off-spreadsheet. (Or maybe you just play with the dollar value or share data to try what-ifs that produce revised holding percentages that are in balance with your target allocation percentages?)

So let's see if I really understand LOL's "don't sweat the pennies" rebalancing approach correctly, as applied to target 2019's spreadsheet...

If today was rebalancing day, LOL! would sell about 1.7% portfolio value of the overweighted small / midcap fund in the 401k account to get that holding and the U.S. stock category back to target. The proceeds would then be spent on the fund in the 401k that is rough equivalent of Vanguard Total Bond, which gets the bond category to target. Then you would make a slight bookkeeping adjustment to add a 1.7% target weighting to your 21st holding and a similar target reduction to Vanguard Total Bond.

Everything else is within 1%, so you are done.

You nailed it. I do have dollar amounts in there. The columns are hidden. No peeking...

Also have two additional columns. One is for whatif/ -- I add $5K to Roth fund a, what does that do to allocation..not much.

Also have a column that I can toggle on and off that shows the effect of new contributions through the end of this year.

In each space there is a fixed fund that I can easily rebalance to - except the 401k. I might add a stable value or similar fund there, and move 1% of the small/mid into that. I might also direct 100% of new contributions to the stable value.

I could do similar in the 403b, and forego mucking with the 401k.

Notice I used might or could, as I know this situation could easily take care of itself before August is over.

 

[Htown Harry]

You nailed it.

I believe I now have a plan. Thanks for the help, everyone.

One last question for LOL! Does your spreadsheet have fields for tracking r-squared and alpha on the holdings reported in the LOL! Market Timing Newsletter?

 

[LOL!]

I believe I now have a plan. Thanks for the help, everyone.

One last question for LOL! Does your spreadsheet have fields for tracking r-squared and alpha on the holdings reported in the LOL! Market Timing Newsletter?

The answer is YES. This is provided by the M* Portfolio Manager. Here's s snapshot of part of the portfolio: