Rebalancing Strategy

[DblDoc]

And on weekends it bets on the PA State lottery.

A necessary diversification!

DD

 

[yakers]

Otah (Unvealing the Retirement Myth) recommends that, historically, every 4 years at the end of a presidential election year gives the best results.

Having said that, up to now I have been re-balancing every year or when I get out of balance by 5%. But now that most of our funds are in target retirement accounts the re-balancing is handled for me.

So how do target funds and balanced funds fairmcompared to periodic rebalancing? don't even know how to check that, but would br interesting to me. If I am notmgoing to rebalance should I just use amTR or balanced fund?

 

[TromboneAl]

It would be hard for me to wait two or four years. Come December in an up year, I can't wait to lock in those gains.

 

[clifp]

No need to rebalance - ever, if you put everything in the new Vanguard Tuesday & Thursday Fund (VTUTH). It is an S&P 500 index fund on Tuesdays and Thursdays and a money market fund on Mondays, Wednesdays an Fridays.

The fund strategy was back tested against this weeks market performance and it looks to be a strong performer.

Bloody hell what happen to VTUTH. On Monday it was in money markets and the market was up, Tuesday it was in stocks and the market was down, Wed it was money markets and the market was up. Then Thursday it got creamed. The market better stay down today or I'm going to declare this is horrible fund.

Or maybe even better start the VSTUTH which is double short version of VTUTH.

 

[REWahoo]

Bloody hell what happen to VTUTH. On Monday it was in money markets and the market was up, Tuesday it was in stocks and the market was down, Wed it was money markets and the market was up. Then Thursday it got creamed. The market better stay down today or I'm going to declare this is horrible fund.

Or maybe even better start the VSTUTH which is double short version of VTUTH.

I gave up - and moved everything to VWTF...

 

[clifp]

I gave up - and moved everything to VWTF...

Geez now you tell us. At least W2R gives us some advance warning.

 

[TromboneAl]

Also good: VOMG and VLOL.

 

[Alan]

So how do target funds and balanced funds fair compared to periodic rebalancing? don't even know how to check that, but would br interesting to me. If I am not going to rebalance should I just use a TR or balanced fund?

That's a good question and I don't know the answer either. While I am simplifying the portfolio for DW's sake, I'm actually getting used to the idea myself of never having to re-balance manually.

 

[donheff]

Also good: VOMG and VLOL.

I just looked and noticed VG converted me to those without asking.