ETF's or mutual funds for balancing AA
Asset Allocation requires periodic balancing to maintain the selected balance. What is the best way to achieve this, with mutual funds or ETF’s? I know the answer is, “It depends.” So what does it depend on?
Let’s make some assumptions:
*Amount of $ to invest, for this exercise, go with 200000 taxed & 400000 tax-deferred
*Timing of withdrawals: use at least 5 years before withdrawal will begin
*ETF and fund is available for each category needed
Objective: low expenses, maximum returns
Other items: ETF cost a commission up front doesn’t it?
Mutual funds might also require an up-front fee if desired fund & your money are not in same company
What about cost to withdraw $ from ETF’s
The funds should be index funds for lowest cost
Has anyone made this comparison?
Are there any other items to consider in the comparison?
Can't you see yourself in the nursing home saying, " Darn! Wish I'd spent more time at the office instead of wasting time with family and friends."