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Old 12-08-2008, 03:49 PM   #21
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The downward market is doing the rebalancing for me. I was a little high in pct of equities before, but now equity pct is down and bond/cash pct up since equity loss has exceeded bond loss. I may not manually rebalance until 2010.
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Rebalancing? Yep
Old 12-08-2008, 05:44 PM   #22
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Rebalancing? Yep

Being about a 35/65 Port for my Retirement $ and the rest is in a All Equity Port to make more for my Charitable Trust..
I rebalance and take $ out of my Bond side ( over +12% YTD so far this yr ) and it forces you to Buy More into Equities..or Buy Low and Sell High..

Worked like a Charm In 87' and again in the last Bear in 02' and really paid off the following 03' & 04' yrs...
Then 07' forced me to rebalance the other way and move alot more into my Bonds, but It paid off.. Big time in both Having only about a -15% Downside in the Port vs would have had over -30%..

I found it best to have a age 65 related Port ( 35/65) regards if your Younger when your going to go for retiring for a Living..and this has worked very well for me..made me work alittle longer than I planned to or figured I needed to, but that was ok...

You should eventually end up with way too much in Bonds and want to either Give it away to charities or Keep making More for the future ideas you might come up with doing with it..

Which of course, is a Happy problem..
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Old 12-08-2008, 05:55 PM   #23
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I set up a plan to buy a little of my index funds weekly so that in 18 months I will be rebalanced and still have 10 years in cash/bonds/cds.
Of course when I set up the plan, the market was much higher than now (a few weeks ago). However, I'm sticking to the plan for now.
Previous to this I've only had to rebalance once since I retired, in 2003, and that wasn't nearly so hard as this time. I did it in one chunk.
So yes, I'm rebalancing, but so slowly that I'm not making way against the tide.
Is this the right thing to do? Heck if I know!
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Old 12-09-2008, 02:30 AM   #24
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I will be getting my annual bonus in the next couple of weeks, shareholder meeting Friday they will tell the officers how much to give us. I got 4K last year but I think this year will be better then in January we get profit sharing in our 401K plan should be 15%. I think I will invest it all in equities since they are on sale.
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Old 12-11-2008, 06:06 PM   #25
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Originally Posted by Lusitan View Post
Which is why I'm glad I don't have to - my Target Retirement fund, that makes up the core of my portfolio, has already been doing it all along, with no input from me.

It's a benefit to the TR funds that I hadn't really considered until this most recent stock market collapse. It leaves me free to cover my eyes and try not to look at the wreckage ...

How frequently do Target Funds rebalance? Is there anything written into the Prospectus? Does the frequency vary from one fund family to another?
Just curious
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Old 12-16-2008, 08:25 PM   #26
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Originally Posted by mickeyd View Post
Just do it. If you are sure of your AA, as you should be, it's a no brainer. Equities may never be this low again in your lifetime.
Didn't they say that in 1929?
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Old 12-16-2008, 08:44 PM   #27
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Originally Posted by Rich_in_Tampa View Post
The volatility has me confused. A couple of 5% surges (or dips) can throw me off very quickly.
I noticed this too. I was a little quick on the trigger with my rebalancing this year . . . jumped in the week stocks went vertical and were down ~35% from the peak. Figured it looked like panic selling and that I was rebalancing at a good time. A couple of weeks later stocks were down 50% and my AA was out of whack again. I was thinking of pushing more chips in but decided to cool it for a bit. I eventually did buy some REITs but after that I think I'm done buying anything for 6 to 12 months. Even though I like the idea of buying stocks on sale, "rebalancing" every couple of weeks seems counter productive.
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Old 12-17-2008, 06:12 PM   #28
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It appears the people buying more equities are w*rking. I am w*rking, and my method of rebalance leans towards using new cash to rebalance.

Most accounts I have rebalance once per year (Dec 29-30-31- last trading day of year). In my 401k I will adjust contributions around June 15 to attempt not to have to sell anything in December.

My Roth account is maxed in August most years ($625/mo) and will be maxed in October this year ($500/mo), so I don't have the flexibility to use deposits to react to late year drops like 2008. Oh well.

In wife's Roth it is a compilation of sector funds. In December I make the decision which sectors I will overweight for the year (in 2009 I chose Real Estate and Financial Services); 2008 was tech and financial services- then we buy some of each sector (tech-healthcare-natural resources-emerging markets-real estate-financial services-growth-value), then overweight 2 or 3 of the sectors with the rest ($150/mo to overweight and $350/mo to all sectors).

Meaning my contributions "rebalance" when I need to... I am close to 100% equities (was 97-3 in June) and am slowly selling gains (2% per year) to get to 90-10 or 80-20 for growth and income portfolio. I assume the drop made me close to 95-5 or 90-10 now (I have not looked yet)... but I will just buy more equities with new money rather than sell bonds right now.
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Old 12-17-2008, 07:22 PM   #29
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DH is still w*rking (for pay; I, of course, am in voluntary domestic servitude) and we've decided that instead of rebalancing, we'll just send new money to lagging asset classes (you are free to interpret this as "too chicken to sell.")

Hmmm..... let's see... this year that would be equities!

Since our portfolio is supposed to be 85%-90% equities, that's gonna be it for the year.
"You'd be surprised at how much it costs to look this cheap." -- Dolly Parton
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Old 12-18-2008, 11:42 AM   #30
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Originally Posted by jIMOh View Post
It appears the people buying more equities are w*rking. I am w*rking, and my method of rebalance leans towards using new cash to rebalance.
I am not working and have been rebalancing this month by buying equities (and selling fixed income assets) to get back to my target asset allocation. The same way Urchina did.

Your method of rebalancing is exactly what I did when I was working.

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