Need help with this:
my total non-retirement savings is currently allocated to 53% US stocks (VTI) and 18% of US bonds (the rest is 14% REIT, 7% gold and 7% of all world stocks).
I know I am too heavy on stocks and not enough into bonds for my risk preference. I would ideally like to be 30% US stocks, 30% world stocks and 30% bonds and the rest is REIT/gold/alternative assets. That is where I started, but had to sell some assets over they years to pay for various things and I tried to sell low capital gains assets that is how I ended up with this skewed allocation.
Plus, it seems some kind of recession is inevitable so being too heavy into stocks does not feel right. SO I know I am overdue to rebalance, but if I sell stocks now to rebalance, I would end up with a lot of capital gains, which I dislike.
If it matters at all, I am 49yo and plan to retire in 3-5 years.
Should I rebalance NOW? and if so - how?
my total non-retirement savings is currently allocated to 53% US stocks (VTI) and 18% of US bonds (the rest is 14% REIT, 7% gold and 7% of all world stocks).
I know I am too heavy on stocks and not enough into bonds for my risk preference. I would ideally like to be 30% US stocks, 30% world stocks and 30% bonds and the rest is REIT/gold/alternative assets. That is where I started, but had to sell some assets over they years to pay for various things and I tried to sell low capital gains assets that is how I ended up with this skewed allocation.
Plus, it seems some kind of recession is inevitable so being too heavy into stocks does not feel right. SO I know I am overdue to rebalance, but if I sell stocks now to rebalance, I would end up with a lot of capital gains, which I dislike.
If it matters at all, I am 49yo and plan to retire in 3-5 years.
Should I rebalance NOW? and if so - how?