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Investing - Theory, News & General • Re: Why again do we rebalance?

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OP,

A) I do 5/25 band based and annual rebalancing.

B) In general, unless we have something like 2020 where the stock market move up or down 30% in a short period of time, my new contribution or withdrawal will keep my 60/40 portfolio within the tolerable range that I do not have to do anything annually.

C) I do both directions rebalancing with a minimum threshold of 5 years of expense in fixed income.

D) I keep 2 to 3 years of expense in my emergency fund away from my 60/40 portfolio.

E) I need to rebalance to maintain my 60/40 AA that is in line of my risk tolerance.

KlangFool

Statistics: Posted by KlangFool — Wed Jan 15, 2025 2:50 pm



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