I understand the basic concept of asset allocation between stocks and bonds, but how often do you tinker with asset allocations when it come to just your stock portion?
Many people on this forum have a target asset allocation between stocks and bonds, for example 60% stocks/40% bonds. The common knowledge seems to be rebalance when your asset allocation changes by 5% (or any other number you choose). So if your stock investments go up to 65% and your bond investments are now at 35%, you would rebalance back to your 60/40 target asset allocation.
I currently do not own any bonds, as I mentioned in my first post: http://www.early-retirement.org/forums/f26/new-member-just-wanted-to-say-hi-68333.html I am loyal to Fidelity, and as I said before, I match dollar for dollar in my Roth and Brokerage. I own the following funds, which can be multiplied by 2 (each account):
FSIVX, purchased $10K, today $12,228.81
FSRVX, purchased $10K, today $10,887.51
FSSVX, purchased $10K, today $14,598.43
FUSVX. purchased $11K, today $16,315.54
To clarify my question, is there any specific way I should split the International equities, REITs, Small cap, and S&P 500? I feel like all that rebalancing does is trigger a bunch of tax events, at least in the brokerage account.
I have about $10K cash in each account, and my plan is to eventually break into the bond market with FLBIX. I have been hesitant for a while because I am worried that the bond bubble could burst. Do I wait or I do I just jump in?
Many people on this forum have a target asset allocation between stocks and bonds, for example 60% stocks/40% bonds. The common knowledge seems to be rebalance when your asset allocation changes by 5% (or any other number you choose). So if your stock investments go up to 65% and your bond investments are now at 35%, you would rebalance back to your 60/40 target asset allocation.
I currently do not own any bonds, as I mentioned in my first post: http://www.early-retirement.org/forums/f26/new-member-just-wanted-to-say-hi-68333.html I am loyal to Fidelity, and as I said before, I match dollar for dollar in my Roth and Brokerage. I own the following funds, which can be multiplied by 2 (each account):
FSIVX, purchased $10K, today $12,228.81
FSRVX, purchased $10K, today $10,887.51
FSSVX, purchased $10K, today $14,598.43
FUSVX. purchased $11K, today $16,315.54
To clarify my question, is there any specific way I should split the International equities, REITs, Small cap, and S&P 500? I feel like all that rebalancing does is trigger a bunch of tax events, at least in the brokerage account.
I have about $10K cash in each account, and my plan is to eventually break into the bond market with FLBIX. I have been hesitant for a while because I am worried that the bond bubble could burst. Do I wait or I do I just jump in?