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Old 05-17-2016, 10:26 AM   #21
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I think the buy and hold advice for re-balancing is to set an interval, such as once a year. Then establish bands, such as 5% in case there are dramatic swings. Then ignore everything else that occurs.

Pretty hard to do, though. I've been measuring monthly and watching AA for about 10 years. I found that new contributions could be directed to wherever to keep things balanced.
This is exactly my approach but I'm not following how it's hard to do if you accept your advice to ignore everything but out of band events. And that's going to cover most of the events that happen because the swings don't usually throw things out of whack that much.
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Old 05-17-2016, 11:42 AM   #22
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I have to be pretty desperate to re-balance & pay the cap gains taxes. Defeats the purpose. If that gets me out of balance due to too many winners, woe to me.
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Old 05-17-2016, 12:43 PM   #23
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i never let the tax tail wag the investment dog
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Old 05-17-2016, 04:20 PM   #24
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I would rather keep investment for a long term unless it is a must in some cases. In 2004 DW and I purchased a rental town home. By the end of 2008 we got huge decline in cost we paid, almost 50%. Yet 7 years later it has recovered and gained almost 10%.
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Crowd-sourcing when to Rebalance
Old 05-17-2016, 04:31 PM   #25
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Crowd-sourcing when to Rebalance

I've never rebalanced other than to lessen my employer stock holdings a while back...
I'm mostly in large diversified low cost ETFs ... My cash equivalent holdings grow at a modest
Amount each year but will cover several years living expense so there's no need to fool with it.

So far I'm well pleased with the results ...
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Old 05-17-2016, 04:44 PM   #26
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This is exactly my approach but I'm not following how it's hard to do if you accept your advice to ignore everything but out of band events. And that's going to cover most of the events that happen because the swings don't usually throw things out of whack that much.
Ignoring all else is hard to do. Not rebalancing.
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Old 05-17-2016, 08:46 PM   #27
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i never let the tax tail wag the investment dog
That's a blind faith way of looking at things. Keep going for it.
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Old 05-18-2016, 03:51 AM   #28
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taxes can be a mixed bag .

dealing with 30 or 40 years of pent up taxes in retirement can be a double edge sword .

i was happy i payed taxes along the way when i made my changes to my portfolio as i changed things for retirement .

i did it in 2007 and was able to do all the changes i wanted without getting killed tax wise .

had i not paid any taxes along the way i would have needed more then 1 year to do it and would have been killed in 2008 if i had to delay the change .

so having a tax torpedo to deal with that has decades of taxes due may not always be the best way either
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Old 05-18-2016, 04:35 AM   #29
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I don't think too deep about taxes, what was, what is. Keep it pretty simple, and try to pay less taxes.

I do notice that others may have different way(s) of looking at this.
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