DblDoc
Thinks s/he gets paid by the post
- Joined
- Aug 11, 2007
- Messages
- 1,224
The rebalancing issue has been discussed extensively on bogleheads as well. My take from it all is that it doesn't really help/hurt returns significantly - but it does manage your level of risk. I use 5% absolute for the bigger chunks and then 25% relative changes for the small slices. ie my Domestic equity is 36% of my AA so it can vary from 31-41% before triggering a rebalance. My EM is 5% so it can vary 5 +/- 0.25*5 so it can vary from 3.75% to 6.25%
I had been running pretty close to my AA until this past 2 weeks. I checked on monday after the drop and I still had not hit my bands and actually had a fair ways to go so no rebalance yet for me.
DD
I had been running pretty close to my AA until this past 2 weeks. I checked on monday after the drop and I still had not hit my bands and actually had a fair ways to go so no rebalance yet for me.
DD