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Rebalancing portfolio
Old 02-09-2006, 07:10 AM   #1
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Rebalancing portfolio

Hello all!
I have several funds in the government/military TSP and want to rebalance my allocations.
Should I do it all at once? Or a little at a time to get dollar cost averaging?
I am about 85% in the S&P and want to move more into the International (I fund) and Small cap (S fund, wilshire 4500) funds.


Thanks!
Bill
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Re: Rebalancing portfolio
Old 02-09-2006, 07:16 AM   #2
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Re: Rebalancing portfolio

Sounds like you want a new allocation rather than rebalance.* Nothing wrong your thinking.* Come up with a new allocation, stick to it and rebalance yearly.* Whenever I come up with a new allocation I do it all at once.* Not a bad idea if you will have new money (your contributions) coming in which will essentially be DCA'ing into the allocation.* But again that is just me.

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Re: Rebalancing portfolio
Old 02-09-2006, 07:17 AM   #3
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Re: Rebalancing portfolio

In this situation, I don't see any reason you would need to DCA unless you are talking mega dollars. *You could make a case for DCA if one of these sectors happened to be very overvalued at this time---but I don't see it.

I could be wrong--
probably am *
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Re: Rebalancing portfolio
Old 02-09-2006, 08:38 AM   #4
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Re: Rebalancing portfolio

pick one of the "L" funds based on your rist tolerance or age. The rebalancing will be automatic from then on.
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Re: Rebalancing portfolio
Old 02-09-2006, 09:26 AM   #5
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Re: Rebalancing portfolio

I like the concept, but even the 2040 fund has 15% in G and F funds (short term treasury and fixed bonds).

I'd like to do 50% C fund (S&P index)
25% I (international funds)
25% S (small cap, wilshire 4500)
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Re: Rebalancing portfolio
Old 02-09-2006, 09:43 AM   #6
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Re: Rebalancing portfolio

then go ahead and do the rebalancing(allocation) all at once. Set up future contributions as you have listed and rebalance yearly from there.
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Re: Rebalancing portfolio
Old 02-13-2006, 08:42 AM   #7
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Re: Rebalancing portfolio

Hi,

Will you be changing your future contribution allocations as well? If so, then you'll be DCA-ing with your future contributions, so I'd see no problem with re-allocating the current balance all at once. In fact, I recently did the same thing to give myself more international exposure (and less large cap).

Now that I'm more balanced out, I'll just rebalance once a year if it gets too skewed.

Karen
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Re: Rebalancing portfolio
Old 02-13-2006, 09:24 AM   #8
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Re: Rebalancing portfolio

Quote:
Originally Posted by Bimmerbill
I like the concept, but even the 2040 fund has 15% in G and F funds (short term treasury and fixed bonds).

I'd like to do 50% C fund (S&P index)
25% I (international funds)
25% S (small cap, wilshire 4500)
Thats not a bad AA IMHO. I used to have 40% G, 20% C, S & I. Now I put new contributions in an L fund. I agree about not wanting bonds so I avoid the F fund but take a closer look at the G fund, it is not exactly a bond fund and it reduces volitility of a portfolio considerably since it cannot lose money.
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Re: Rebalancing portfolio
Old 02-13-2006, 12:41 PM   #9
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Re: Rebalancing portfolio

Thanks for the thoughts! I have been at 60 20 20% for a while, but never changed the money already in.

I did an interfund transfer to 60 C fund, 20 each on I and S.

I may add some G fund just to be on the safe side, but hate to think of the low returns on the 20 to 25 years I have left until I start drawing the money!
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Re: Rebalancing portfolio
Old 02-24-2006, 03:48 PM   #10
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Re: Rebalancing portfolio

You did not mention a bond allocation. Are you 100% in equities?
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Re: Rebalancing portfolio
Old 02-24-2006, 06:55 PM   #11
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Re: Rebalancing portfolio

I am in a similar problem, but a large portion is in taxable accounts. I'm just reluctant to force the taxable event by selling to redistribute.

From the responses I've seen on this board and some extracurricular reading, I've found that AA is probably unique to your personal situation. Your idea seems fairly well in line with most, although you're going to get a lot of input regarding a lack of a bond portion.

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