Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Rebalancing portfolio
Old 02-09-2006, 08:10 AM   #1
Thinks s/he gets paid by the post
Bimmerbill's Avatar
 
Join Date: Jan 2006
Posts: 1,631
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
__________________

__________________
Bimmerbill is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Rebalancing portfolio
Old 02-09-2006, 08:16 AM   #2
Thinks s/he gets paid by the post
wildcat's Avatar
 
Join Date: Feb 2005
Location: Lou-evil
Posts: 2,025
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.

Wildcat out
__________________

__________________
"These walls are kind of funny. First you hate 'em, then you get used to 'em. Enough time passes, gets so you depend on them"
wildcat is offline   Reply With Quote
Re: Rebalancing portfolio
Old 02-09-2006, 08:17 AM   #3
Thinks s/he gets paid by the post
JPatrick's Avatar
 
Join Date: Jun 2005
Posts: 2,494
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 *
__________________
JPatrick is offline   Reply With Quote
Re: Rebalancing portfolio
Old 02-09-2006, 09:38 AM   #4
Dryer sheet aficionado
 
Join Date: Nov 2005
Posts: 32
Re: Rebalancing portfolio

pick one of the "L" funds based on your rist tolerance or age. The rebalancing will be automatic from then on.
__________________
aimhigh is offline   Reply With Quote
Re: Rebalancing portfolio
Old 02-09-2006, 10:26 AM   #5
Thinks s/he gets paid by the post
Bimmerbill's Avatar
 
Join Date: Jan 2006
Posts: 1,631
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)
__________________
Bimmerbill is offline   Reply With Quote
Re: Rebalancing portfolio
Old 02-09-2006, 10:43 AM   #6
Dryer sheet aficionado
 
Join Date: Nov 2005
Posts: 32
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.
__________________
aimhigh is offline   Reply With Quote
Re: Rebalancing portfolio
Old 02-13-2006, 09:42 AM   #7
Full time employment: Posting here.
kaudrey's Avatar
 
Join Date: Feb 2006
Location: Alexandria, Va
Posts: 943
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
__________________
Two roads diverged in a wood, and I - I took the one less travelled by...
kaudrey is offline   Reply With Quote
Re: Rebalancing portfolio
Old 02-13-2006, 10:24 AM   #8
Thinks s/he gets paid by the post
 
Join Date: Jul 2003
Location: Pasadena CA
Posts: 2,695
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.
__________________
T.S. Eliot:
Old men ought to be explorers
yakers is online now   Reply With Quote
Re: Rebalancing portfolio
Old 02-13-2006, 01:41 PM   #9
Thinks s/he gets paid by the post
Bimmerbill's Avatar
 
Join Date: Jan 2006
Posts: 1,631
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!
__________________
Bimmerbill is offline   Reply With Quote
Re: Rebalancing portfolio
Old 02-24-2006, 04:48 PM   #10
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
mickeyd's Avatar
 
Join Date: Apr 2004
Location: South Texas~29N/98W
Posts: 5,884
Re: Rebalancing portfolio

You did not mention a bond allocation. Are you 100% in equities?
__________________
Part-Owner of Texas

Outside of a dog, a book is man's best friend. Inside of a dog, it's too dark to read. Groucho Marx

In dire need of: faster horses, younger woman, older whiskey, more money.
mickeyd is online now   Reply With Quote
Re: Rebalancing portfolio
Old 02-24-2006, 07:55 PM   #11
Dryer sheet aficionado
 
Join Date: Feb 2006
Posts: 42
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.

AV8
__________________

__________________
AV8 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Rebalancing the Portfolio - What is your approach chinaco FIRE and Money 9 05-15-2007 02:38 PM
SWR - Amortize your portfolio RgrGd FIRE and Money 5 03-28-2007 11:29 AM
Portfolio Rebalancing Rollie FIRE and Money 3 12-07-2006 08:00 PM
More Buckets, Portfolio Allocations, and Rebalancing tomz FIRE and Money 3 10-11-2006 05:25 PM
Don't waste your money rebalancing REWahoo FIRE and Money 48 07-08-2005 12:38 PM

 

 
All times are GMT -6. The time now is 02:46 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.