Rebalance Day

[ripper1]

I need to do my annual rebalance and it is hard because stocks have done so well. Oh well. Here we go. Do others here rebalance yearly or within bands?

[RunningBum]

I would normally be rebalancing today, or maybe would have at the end of the year after distributions come in and any Roth conversions are done. But, I'll have a 6 figure cash influx coming in when I sell a townhouse, and I'll just use that to rebalance. It looks like I'm close enough that I probably wouldn't bother today anyway.

[Marc]

Since I am in the withdrawal stage I continuously rebalance throughout the year deciding whether to sell a stock fund or bond fund. In addition, in 2019 I built up a cash position as the market kept increasing; I am slightly below my new stock target of 55% but have three more sales points (20K each) that we may hit in near future or, if the market tanks, I don't need to sell any stocks until sometime in 2022.

Marc

[HFWR]

I use +/-10% bands, and all investments are well within spec.

[Moemg]

My RMD will take care of rebalancing for me .

[Another Reader]

Can't do anything until Fidelity posts the RMD's. The website says the numbers may change during the day or may not be available until the end of the day. Lots of data processing squirrels must be running in their wheels, collecting overtime, to get those numbers exactly right.

[pb4uski]

If I am overweight on equities I rebalance "opportunistically" during the year when it looks like Mr. Market's momentum has gotton ahead of itself; otherwise at the end of December when I do tIRA withdrawals with high percentage withholdings as a substitute for estimated taxes and my year-end Roth conversion.

I am currently way under target on equities (57% vs 65%) as a result of some repositioning that I did in 2019, so I suspect that it will be quite a while before I need to rebalance.

[cooch96]

Today is my rebalance day too. I’ve considered doing it biennially, like on even numbered years, but I reckon that’s too long between events.

I wish this had been a poll. I do better with simple graphs than words.

[easysurfer]

Rebalance day for me too. Just finished scheduling the transactions on Vanguard.

Time for breakfast. Then need to do some other 1st of year stuff like setting up my Vanguard monthly autowithdrawal "paycheck" .

[pacergal]

Just checked true balances, I am at 76/24(17/7). While working, I was always closer to 90 % equities.
I am comfortable anywhere 50/50 to 80/20, as we both have pensions, but most comfortable between 60/40 to 70/30. I rebalance if off approx. +/- 5%, so close enough. I think I will sit on it a bit.

[SecondCor521]

I require myself to rebalance if I ever get more than 2 percentage points away from my target AA, and I allow myself to rebalance more often if I feel like it. I consider my entire portfolio for AA purposes, and hold my bonds in, and reallocate within, my traditional IRA. So it's easy and doesn't have any tax consequences.

My target AA is 93/7, and my actual today is 93.35/6.65, so at the moment I won't bother.

My plan is to move towards 95/5 whenever the next downturn comes.

[Gotadimple]

Rebalancing happens in January when I withdraw for my cash needs. My AA is 55/45 and I find I am not often out of balance, but also use +/- 5% bands within asset types to generate cash needed in January for the year.

[Winemaker]

I sell some equities during the course of the year. If my small cap runs up quickly or seems overweight, I'll sell and put in stable value fund. Or mid cap, or large cap. I keep about 3 years of withdrawals in stable value and make my withdrawal tomorrow.

[audreyh1]

Quote:

Originally Posted by ripper1 I need to do my annual rebalance and it is hard because stocks have done so well. Oh well. Here we go. Do others here rebalance yearly or within bands?

Yes rebalancing as I was way out of whack. There are tax consequences- oh well, c’est la vie.

[cranberryjoe]

My desired AA is 65/35. I check my AA at the end of each quarter, or whenever I happen to hear there's been a really good or really bad stretch on Wall Street. If it ever goes beyond 70/30 or 60/40 then I rebalance.


My balances yesterday were just barely shy of my rebalance bands. However, I plan to start the year with a huge Roth conversion tomorrow, which will trigger a rebalance. Tomorrow is also the day I will shuffle funds into my savings account to cover this year's expenses, so one way or another I should be back to 65/35 after market close tomorrow.

[Dtail]

Overall I use +/- 5%.
By selling my TIRA stock a couple of days ago to satisfy my 2020 MAGI, i am close enough to my 55% stock AA.

[audreyh1]

I usually wait until distributions are paid out in Dec for the dust to settle and see what rebalancing is left. So pretty much end of year unless we have a sudden dramatic gain or drop mid year. Finish cleaning up with my first of year annual income withdrawal.

[W2R]

Quote:

Originally Posted by ripper1 I need to do my annual rebalance and it is hard because stocks have done so well. Oh well. Here we go. Do others here rebalance yearly or within bands?

Thanks for posting this thread, ripper1. It reminded me to stop procrastinating and go ahead with my usual early January rebalancing. I rebalance right after I do my annual withdrawal in January for the following year's spending. I also allow myself to rebalance at other times if the equity portion of my 42:58 AA is off by over 2.5% (less than 39.5% or over 44.5%). But that would be rare.

Yes, it was hard this year! Not only does one not want to sell funds with such good performance, but also the taxes are unpleasant to consider. So anyway, thanks again for the little "nudge".

[Montecfo]

I have some funds awaiting investment but I do not rebalance on a single day. It is usually done by my investing process. I made a contribution to our DAF and am reinvesting more in international and emerging markets.

[easysurfer]

Quote:

Originally Posted by W2R Thanks for posting this thread, ripper1. It reminded me to stop procrastinating and go ahead with my usual early January rebalancing. I rebalance right after I do my annual withdrawal in January for the following year's spending. I also allow myself to rebalance at other times if the equity portion of my 42:58 AA is off by over 2.5% (less than 39.5% or over 44.5%). But that would be rare. Yes, it was hard this year! Not only does one not want to sell funds with such good performance, but also the taxes are unpleasant to consider. So anyway, thanks again for the little "nudge".

I finished scheduling my annual rebalancing today.

Wasn't hard for me to sell to rebalance as my mindset is happy to take some chips off the table. Despite election years usually being good stock performance years, my gut feels there going be a big correction in 2020. Of course, I've been saying that for some time now. Good thing I don't time the market.