Join Early Retirement Today
Thread Tools Search this Thread Display Modes
When does FireCalc 'rebalance' ?...............
Old 04-06-2006, 07:27 AM   #1
Posts: n/a
When does FireCalc 'rebalance' ?...............

I searched for this answer on the FireCalc page as well as this forum. I could not find a discussion on this. Forgive me if this is 'old ground', but I just could not find anything on this.

I was pondering what FireCalc was doing and started thinking about this scenario. FireCalc maintains a fixed Stock/Bond ratio, but in real life we don’t.

For example : If you are 50% stocks and 50% Bonds with $1Million and the Stock market drops 50% one day you now have $750K and roughly 67% is now in bonds. I am guessing that FireCalc ‘rebalances’ your portfolio and you have immediately bought some stocks at this cheaper price. And instead of having $250K in stocks, you now have $325K in stocks. In real life you would probably rebalance at the first of the year.

So my questions are:

1.) When does FireCalc Rebalance?
2.) How do you think this would affect a real life portfoilo?
  Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: When does FireCalc 'rebalance' ?...............
Old 04-06-2006, 08:49 AM   #2
Posts: n/a
Re: When does FireCalc 'rebalance' ?...............

My wild a$$ guess: yearly. That is, it doesn't explicitly consider rebalancing, but it probably looks how a portfolio with the given asset allocation would do on each year. That's the same as yearly rebalancing.
  Reply With Quote
Re: When does FireCalc 'rebalance' ?...............
Old 04-07-2006, 11:24 AM   #3
Posts: n/a
Re: When does FireCalc 'rebalance' ?...............

  Reply With Quote
Re: When does FireCalc 'rebalance' ?...............
Old 04-07-2006, 11:26 AM   #4
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 49,396
Re: When does FireCalc 'rebalance' ?...............

I'm with T-Al...

Numbers is hard
REWahoo is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Firecalc slays a strawman, deceives many hankjoy FIRE and Money 46 11-30-2010 03:14 PM
Handling pensions and SS in Firecalc SecondCor521 FIRE and Money 5 04-19-2007 11:21 AM
FIRECalc data dumps or saved runs for referencing during posts? Nords FIRECalc support 6 01-25-2007 06:09 AM
dory36: old vs. new firecalc results? halo FIRECalc support 31 05-29-2006 09:31 PM

» Quick Links

All times are GMT -6. The time now is 05:54 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2023, vBulletin Solutions, Inc.