Join Early Retirement Today
Thread Tools Search this Thread Display Modes
I Rebalanced Wrong.....But I Came Out Ahead!
Old 02-04-2016, 08:16 PM   #1
Thinks s/he gets paid by the post
Join Date: Nov 2009
Posts: 4,116
I Rebalanced Wrong.....But I Came Out Ahead!

A few weeks ago, I made a rebalancing move in my IRA because the stock portion had dropped enough to take me far enough away from my targeted AA of 50/50. But I stupidly rebalance the wrong way, moving $10k from stock bond fund to the bond fund, not the other way around like I planned to.

And dopey me, I didn't realize this for another week when, after the stock market dropped some more, I reviewed my AA again to see if another rebalancing move was needed. When I entered another rebalancing move of $10k I received a warning about a "round trip" move in the IRA. That is, a reverse transfer within a short time of a previous move. It then dawned on me that my earlier transfer was in the wrong direction. I canceled my proposed move and made a new one but for twice the amount ($20k) in order to undo the earlier move.

It turned out that the net amount from both moves enabled me to buy an extra $800 worth of shares in the stock fund than I would have done had I done my original $10k move correctly. So, my stupidity earned me an extra $800!

Any of you ever make a dumb move like this which paid off?

Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is online now   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 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!

Old 02-04-2016, 09:36 PM   #2
Moderator Emeritus
W2R's Avatar
Join Date: Jan 2007
Location: New Orleans
Posts: 40,177
That's so cool! Congratulations.

I lucked out in a way that's a little bit similar, when I sold part of my portfolio to buy my dream house in cash. The day when it had to be done, was within one day of the May 2015 stock market high. So, I bought my house on a "blue light special", I suppose.

Then I sold my prior home and by the time I was able to put that cash into my portfolio, the market was down so I could buy more shares than otherwise. All of this house buying/selling good fortune was just blind luck, not market timing.
5/17/2018: Retired a second time, this time from my volunteer Admin duties. After 10 years of being on the team, and 40,000+ posts, the time just seemed right. It has been such fun to work with all of our Mods and Admins and I plan to stick around as a regular member.
W2R is offline   Reply With Quote

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
8 yrs of tuition ahead and then full speed ahead to retirement zerogravity Hi, I am... 23 04-19-2015 10:10 AM
Rebalanced today ducky911 FIRE and Money 12 03-13-2014 03:18 PM
I just rebalanced ejman FIRE and Money 22 06-04-2013 04:10 AM
AA rebalanced for 2011 easysurfer FIRE and Money 8 01-01-2011 06:11 PM
Rebalanced on the "way up" 8-4-09! audreyh1 FIRE and Money 27 08-05-2009 04:28 PM


All times are GMT -6. The time now is 05:56 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.