Comrades,
We're currently in peak accumulation phase, and I'm coming due for my annual rebalance but was thinking wouldn't it just make more sense to stay dynamic with where the monthly stash is going instead of actually buying and selling? Since we've got a good chunk in taxable accounts I'm thinking could avoid some tax hit today, then again lt cap gains tax rate is pretty low right now maybe better pulling chips off table when can.
Toy example = if I'm 50/50 in S&P500/TotalIntlStock I'm out of wack by S&P up 5% vs. intl down 15% over last year. Instead of doing a single transaction why not just direct 100% of my monthly contributions towards intl until back in sync then go back to a 50/50 contributions split. Repeat as needed.
Obviously depending on how off they are, how big the balances are, and how big monthly contributions are I could end up in a cycle of constantly chasing a desired asset allocation that I never reach.
Does this seem stupid?
We're currently in peak accumulation phase, and I'm coming due for my annual rebalance but was thinking wouldn't it just make more sense to stay dynamic with where the monthly stash is going instead of actually buying and selling? Since we've got a good chunk in taxable accounts I'm thinking could avoid some tax hit today, then again lt cap gains tax rate is pretty low right now maybe better pulling chips off table when can.
Toy example = if I'm 50/50 in S&P500/TotalIntlStock I'm out of wack by S&P up 5% vs. intl down 15% over last year. Instead of doing a single transaction why not just direct 100% of my monthly contributions towards intl until back in sync then go back to a 50/50 contributions split. Repeat as needed.
Obviously depending on how off they are, how big the balances are, and how big monthly contributions are I could end up in a cycle of constantly chasing a desired asset allocation that I never reach.
Does this seem stupid?