Originally Posted by brewer12345
If you can't stand not tracking the markets, then clearly you should reshuffle.
But on a fundamental basis, banks are dirt cheap and now have a gigantic tailwind in the form of the fed cutting rates.
I do agree that banks are extremely cheap and will eventually post some great returns. The reason I want to rebalance is because Ive come to realize, for better or worse, that being concentrated in a few stocks will not obtain as steady results as I broadly diversified portfolio. Currently I can stand not tracking the market but as my portfolio grows I am not so sure.
I really don't see how the various experts say putting bonds and such in a roth is a good thing. It seems to me you would want your non taxable accounts to have the most growth simply because they are not taxable. I will have to run a few scenario's on this in the future. As for my tax situation - I have never pay much in taxes.
Six months of my income this year will be tax free leaving me in the extremely poor basket according the government. Of course that doesn't include capital gains.
I have actually never participated in the TSP. My old justification for this was, "Cant withdraw it until I am OLD." Probably not the smartest thing but I have come to enjoy having freecash flow.
I would be extremely bored with a 3 fund portfolio. This is precisely what led me to not indexing my portfolio a few years ago. That is the reason if I index I would probably use many more funds than is really needed - It keeps me interested!
Thanks everyone for the responses. You guys have given me much to think about while I am deployed in the near future..