Originally Posted by figner
This is one of the reasons I like slice and dice: so that in withdrawal phase, I can just sell whichever funds are doing best (or least badly!), without having to sell as many losers with the winners. If my assets were all in a TSM type fund, this would be impossible. Of course, since the funds I buy are generally index funds, they will include both losers and winners. But at least if enough of the slices are uncorrelated enough, I should have some control over avoiding selling the worst losers.
Good point. It seems that this strategy is closely related to periodic rebalancing.
If your money is in taxable funds, rebalancing may not be tax efficient, so I think you're saying that:
When you're in the saving phase, you buy the classes that are under weighted (because of recent poor performance).
When you are in the withdrawal phase, you sell the over weighted classes.
It seem that, if your assets are in tax qualified accounts, then you can usually rebalance as much as you want and don't need to pay as much attention to exactly where you are buying or selling.