did you rebalance portfolio in the past month?

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bugleheadd
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did you rebalance portfolio in the past month?

Post by bugleheadd »

have any of you rebalanced by selling equities or adding more bonds since the run up of stock market in the past month?

how often do you check your portfolio and how do you determine when to rebalance?

do you only rebalance at a certain time of the year?
ponyboy
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Re: did you rebalance portfolio in the past month?

Post by ponyboy »

no, staying the course
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KingRiggs
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Re: did you rebalance portfolio in the past month?

Post by KingRiggs »

I contribute to my tax-advantaged accounts once per month. On that day, I update a spreadsheet that tells me where I currently stand with AA, and buy whatever is lagging behind. If I have strayed by more than 5%, I do a formal rebalance.

I have been buying bonds essentially since the market recovered last Spring. Have not had to do a rebalance, but it's getting closer...
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bugleheadd
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Re: did you rebalance portfolio in the past month?

Post by bugleheadd »

ponyboy wrote: Thu Dec 10, 2020 1:22 pm no, staying the course
does that mean you are 100% allocation to one asset, thus no rebalancing needed? or that your asset allocation split hasnt changed lately?
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bugleheadd
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Re: did you rebalance portfolio in the past month?

Post by bugleheadd »

KingRiggs wrote: Thu Dec 10, 2020 1:25 pm I contribute to my tax-advantaged accounts once per month. On that day, I update a spreadsheet that tells me where I currently stand with AA, and buy whatever is lagging behind. If I have strayed by more than 5%, I do a formal rebalance.

I have been buying bonds essentially since the market recovered last Spring. Have not had to do a rebalance, but it's getting closer...
so i am guessing you are retired, thus the need to keep buying bonds?
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KingRiggs
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Re: did you rebalance portfolio in the past month?

Post by KingRiggs »

bugleheadd wrote: Thu Dec 10, 2020 1:30 pm
KingRiggs wrote: Thu Dec 10, 2020 1:25 pm I contribute to my tax-advantaged accounts once per month. On that day, I update a spreadsheet that tells me where I currently stand with AA, and buy whatever is lagging behind. If I have strayed by more than 5%, I do a formal rebalance.

I have been buying bonds essentially since the market recovered last Spring. Have not had to do a rebalance, but it's getting closer...
so i am guessing you are retired, thus the need to keep buying bonds?
No, 10+ years from retirement. I buy bonds because their percentage in my portfolio has fallen below my set AA as a result of stocks recent outperformance.

Buy low, sell high, right?
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BolderBoy
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Re: did you rebalance portfolio in the past month?

Post by BolderBoy »

bugleheadd wrote: Thu Dec 10, 2020 1:10 pm 1) have any of you rebalanced by selling equities or adding more bonds since the run up of stock market in the past month?

2) how often do you check your portfolio and how do you determine when to rebalance?

3) do you only rebalance at a certain time of the year?
1) Yes, by selling VTSAX -> buying VBTLX (in tax-advantaged account)
2) Check sporadically, maybe once-a-month; how much AA is out of balance for my taste-du-jour.
3) No, my rebalancing is market performance driven.
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Re: did you rebalance portfolio in the past month?

Post by flaccidsteele »

bugleheadd wrote: Thu Dec 10, 2020 1:10 pm have any of you rebalanced by selling equities or adding more bonds since the run up of stock market in the past month?
No
bugleheadd wrote: Thu Dec 10, 2020 1:10 pm how often do you check your portfolio and how do you determine when to rebalance?
I check my portfolio once a quarter. Too often imo

I started investing in the 1990s. Never actively rebalanced to achieve a pre-set AA. Ever
bugleheadd wrote: Thu Dec 10, 2020 1:10 pm do you only rebalance at a certain time of the year?
No. Never
sailaway
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Re: did you rebalance portfolio in the past month?

Post by sailaway »

Our bi annual check in was last weekend and we did indeed rebalance. If we have to rebalance into bonds again next year, we won't be able to do it in any single tax deferred account.
runner3081
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Re: did you rebalance portfolio in the past month?

Post by runner3081 »

Nope, have never re-balanced via selling/buying.

Each Jan 1, I look at our allocation and adjust future contributions to re-balance.
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Re: did you rebalance portfolio in the past month?

Post by investnoob »

runner3081 wrote: Thu Dec 10, 2020 2:32 pm Nope, have never re-balanced via selling/buying.

Each Jan 1, I look at our allocation and adjust future contributions to re-balance.
This is similar to what I do. I make contributions during tax season and buy new funds based on my AA.
My original goal was 60% s&p 500, 20% TSX, 20% EAFE. I am probably sitting at something around 70% S&P 500, 15% TSX, 15% EAFE.
My new goal is 60% s&p 500, 10% TSX, 30% EAFE.
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Re: did you rebalance portfolio in the past month?

Post by matti »

I invest all of my retirement dollars in a Vanguard Target Retirement fund so I don't do any rebalancing myself. I do check my portfolio balance a handful of times per year just to see how I'm doing, but not to make any changes.
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Re: did you rebalance portfolio in the past month?

Post by BigJohn »

I was outside my rebalancing bands last week when I did my normal year-end check. Sold stocks and bought bonds back to my target. All consistent with my plan, nothing special.
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Re: did you rebalance portfolio in the past month?

Post by grabiner »

I don't think I have hit my rebalancing band yet, but I will rebalance in January when I increase my bond allocation as I am one year closer to retirement. (Unless the stock market crashes in the rest of the year, I will be below my rebalancing limit with the allocation change, and I do a full rebalance to the exact target in January anyway,)
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Re: did you rebalance portfolio in the past month?

Post by livesoft »

bugleheadd wrote: Thu Dec 10, 2020 1:10 pm have any of you rebalanced by selling equities or adding more bonds since the run up of stock market in the past month?
Yes.

how often do you check your portfolio and how do you determine when to rebalance?
Whenever I want, but if my portfolio was in balance yesterday, then it will be in balance today unless the market makes a big move. Thus, I usually check my asset allocation on a day of a big movement. I have my broker send me an e-mail alert whenever a ticker symbol that I have designated moves a relatively large amount, so I look on the days that I receive one of those alerts. That happens maybe 2 to 4 times a year.

do you only rebalance at a certain time of the year?
No, because one would miss the best days to rebalance by just using a calendar.
Don't make rebalancing complicated.
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Re: did you rebalance portfolio in the past month?

Post by Financologist »

Yes. I have an allocation target and have sold some stocks in my 401k to fund Bond purchases a few times over the last several months.

Never had any bonds whatsoever until I realized a few years ago I may be ~10 years away from hitting my retirement $#.

Admittedly, at a certain point I got a bit nervous with the amounts I was dealing with and thought it prudent to consider preservation strategies.
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CalPoppy
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Re: did you rebalance portfolio in the past month?

Post by CalPoppy »

Rebalanced recently.

I moved from checking once a year to once a month, as I was missing too many rebalancing opportunities. I rebalance if off 5%.

If you have most of your portfolio with one firm, it’s easy view your overall asset mix online. Then, if needed, use a spreadsheet to more specifically determine which funds to buy/sell.
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Re: did you rebalance portfolio in the past month?

Post by KlangFool »

OP,

Yes. I rebalanced by selling stocks: Total Stock, Total International, Small-cap Value.


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59Gibson
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Re: did you rebalance portfolio in the past month?

Post by 59Gibson »

Yes I have re-balanced recently. The folks saying they re-balance with new cash into bonds means they're letting a riskier allocation ride. Its worked so far this year. It will not always work that way. Depends on how far it's gotten out of whack and long it takes.
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Re: did you rebalance portfolio in the past month?

Post by anon_investor »

bugleheadd wrote: Thu Dec 10, 2020 1:10 pm have any of you rebalanced by selling equities or adding more bonds since the run up of stock market in the past month?

how often do you check your portfolio and how do you determine when to rebalance?

do you only rebalance at a certain time of the year?
I basically do not rebalance if my AA is not off more than 5%.
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Re: did you rebalance portfolio in the past month?

Post by jcw3rd »

I rebalanced twice so far this year. First time was the first week of April. Moved $100k from bonds to equities (VTSAX). Second time was first week of June. Moved $86k from equities back to my bond 'bank'. The first move was due to my AA drifting from desired 65/35 down to 57/43. The second move in June was to move from 70/30 back to desired 65/35. Both moves were done within my tax-advantaged accounts (IRA and ROTH). BTW, I always wait until my AA is off by 5 points or more.

Is this strategy a sound one when compared to fixed-date annual rebalancing? Opinions?
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Re: did you rebalance portfolio in the past month?

Post by Ryan_Colorado »

Yes, gradually and fairly minorly the last three months but mostly because of my fund selection in a 457 through work. I was weighing more towards equities quicker than I intended.

However, I did decide last week to make an AA change from 80/20 to 75/25. I can't say my rationale is sound or well thought out. I just wanted a bit more buying power in the event an opportunity arises. Based on my age and time frame I teeter between 80/20 and 75/25 being the right thing, but I really don't sweat it. My forthcoming Dec 457 contribution will eat away at that difference.
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Re: did you rebalance portfolio in the past month?

Post by jebmke »

Im expecting a small re-balance later this month when dividends are paid. No control over that.
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bugleheadd
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Re: did you rebalance portfolio in the past month?

Post by bugleheadd »

its hard not to check allocations more often as the markets been volatile this year. i rebalanced into stocks back in feb and march.
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Re: did you rebalance portfolio in the past month?

Post by ccf »

I rebalance once a year.

I also rebalance when I am off by more than 5% but that's very rare as my tax deferred accounts are all balanced funds. It happened this March.
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Re: did you rebalance portfolio in the past month?

Post by Broken Man 1999 »

I rebalanced a bit in November, going from VTI ETF (Total Stock Market) to VGIT ETF (Intermediate-term Treasury Index).

My online account is displayed M-F during market hours.

I rebalance when I need to do so, rather than any specific date.

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Re: did you rebalance portfolio in the past month?

Post by Dottie57 »

No. Haven’t met requirements for rebalancing.
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Re: did you rebalance portfolio in the past month?

Post by Northster »

I did some rebalancing and upped my charitable giving from stock funds. May do some more in the new year.
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Re: did you rebalance portfolio in the past month?

Post by jrbdmb »

bugleheadd wrote: Thu Dec 10, 2020 1:10 pm have any of you rebalanced by selling equities or adding more bonds since the run up of stock market in the past month?
Yes. I rebalanced based on being overweight stocks due to their recent outperformance, and also as my glide path dictates that I decrease stocks and increase bonds as I edge towards retirement.
how often do you check your portfolio and how do you determine when to rebalance?
I currently check things based on changes of VTI (Fidelity SMS alert if VTI rises or drops a set amount). If things are enough out of range then I rebalance. I'm sure i could check less often and still be OK.
do you only rebalance at a certain time of the year?
No, whenever my balances vs. AA tell me too.
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Re: did you rebalance portfolio in the past month?

Post by carminered2019 »

My AA is flexible, I was 60/40 before March then went 96/4 in March and now about 70/30.
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Re: did you rebalance portfolio in the past month?

Post by pasadena »

bugleheadd wrote: Thu Dec 10, 2020 1:10 pm have any of you rebalanced by selling equities or adding more bonds since the run up of stock market in the past month?
Yes and no. I haven't reached my rebalancing bands, and still have a little money come in regularly, so I buy bonds, and that's enough to keep the current AA within the bands.

But I did rework my asset location (in Roth and 401(k), not in taxable) back in October so that technically took care of any rebalancing needs. I think my retirement accounts were right at the edge of the rebalancing band at the time.
how often do you check your portfolio and how do you determine when to rebalance?
Every time I have new money to invest.
do you only rebalance at a certain time of the year?
No.
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Re: did you rebalance portfolio in the past month?

Post by dratkinson »

I rebalance at the first of the month with new money (redirected distributions + excess of pension/SS).

Have mostly been buying bonds (munis) since 2009 in an attempt to maintain my AA.
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Re: did you rebalance portfolio in the past month?

Post by aristotelian »

Yes, bought some LTT in Roth and TIAA Traditional Annuity in my employer plan.
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Re: did you rebalance portfolio in the past month?

Post by Stinky »

Yes.

Have been selling International equities and buying into bond fund.

It’s nice that Total International equities have outperformed US equities recently.
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Re: did you rebalance portfolio in the past month?

Post by Paul78 »

I did last Friday. Basically put 40k in the market back when it was DOW 20k and just put the 40k back in the G-fund and restarted my biweekly contributes to G-fund (I drop my contribution allocation down to 0 in the g-fund for the past 7 months). I won't call the rebalance market timing because I am not making any guessing as to what the market will do (I won't be shocked if we see DOW 40k in a year or two or if the market falls 50%). It was more because my allocation was getting out of whack (was like 94% stocks 6% bonds). I prefer to stay in the 80-90 stocks 10-20 bond range.
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Re: did you rebalance portfolio in the past month?

Post by mrb09 »

Yes, my 60/40 was up to 64/56, rebalanced back to 60/40 in my tax deferred account.
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Re: did you rebalance portfolio in the past month?

Post by Affable at 50 »

bugleheadd wrote: Thu Dec 10, 2020 1:10 pm have any of you rebalanced by selling equities or adding more bonds since the run up of stock market in the past month?

how often do you check your portfolio and how do you determine when to rebalance?

do you only rebalance at a certain time of the year?
I review my accounts monthly but will only rebalance the portfolio if the composition varies enough from the percentages specified in my IPS. I am planning to invest some fresh funds in the market within a month (2021 Roth IRA, HSA, and lump sum Roth 401k) so I held off on making any changes to the present allocations.

At this stage in my asset accumulation phase my taxable brokerage account and Roth IRA hold 100% US Equity index funds. I do all of my rebalancing within my 401k.

I will re-evaluate the balances early in 2021 after I put the fresh cash to work for me. I want to make sure that I am not overweight equities at that point.
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Re: did you rebalance portfolio in the past month?

Post by ruralavalon »

bugleheadd wrote: Thu Dec 10, 2020 1:10 pm have any of you rebalanced by selling equities or adding more bonds since the run up of stock market in the past month?
No.

how often do you check your portfolio and how do you determine when to rebalance?
I look at the returns almost daily.

I normally rebalance when the stock/bond allocation is off target by more than 5%.
do you only rebalance at a certain time of the year?
I normally rebalance when the stock/bond allocation is off target by more than 5%.
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Re: did you rebalance portfolio in the past month?

Post by MathWizard »

No, I rebalance in bulk only very rarely.

I am almost always rebalancing through contributions. Currently, I'm contributing
more to bonds right now than to stocks to move the AA back more to bonds .
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Re: did you rebalance portfolio in the past month?

Post by triggertreat »

Yes Im retired and have no ongoing deposits.I had a final ESOP payment posted and I used it to return to 50/50.
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Re: did you rebalance portfolio in the past month?

Post by gegenschein »

I have a slightly different allocation strategy. I maintain four years living expenses in bonds and money market. That is under 18% of my portfolio right now. I may add a couple of percent to bonds in the future.

I am retired and have been for 5 1/2 years so I have plenty of time to putter around with my portfolio. I check my balances almost daily on MorningStar portfolio tracker and do a complete analysis of our finances and portfolio monthly. This amounts to about two hours on my spread sheets.

If my AA is between 3% and 5% out of whack for a couple of months in a row I will re-balance, but only if I can move money from an appreciated asset into a less appreciated one. I do DCA my re-balances.

AA is the least predictable aspect of investing. My AA percentages admittedly have a lot of "blue sky" incorporated in them. My experience is: Saving assiduously, investing regularly, using low cost investment products and avoiding market timing (Buy & Hold) are much more important. An investor does need to watch their portfolio, perhaps not as frequently as I do, to avoid market changes really screwing up their AA.

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Re: did you rebalance portfolio in the past month?

Post by avenger »

I have been buying bonds in taxable every paycheck and my entire 457 contribution has been going to the stable value fund.
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Re: did you rebalance portfolio in the past month?

Post by Wiggums »

I will rebalance in January - just once a year. I logon only once a month to get the balance. I try to ignore everything in between.
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Re: did you rebalance portfolio in the past month?

Post by dcabler »

Yes just this week in fact.
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Re: did you rebalance portfolio in the past month?

Post by ad2007 »

Not rebalancing to avoid taxable event. Accounts are all stocks in taxable and all in bonds in tax deferred. AA has drifted to about 80/20. Retired so no more income to balance out AA. Been mulling over this as I targeted 50/50 but surprisingly comfortable with 80/20.
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Re: did you rebalance portfolio in the past month?

Post by Ed 2 »

bugleheadd wrote: Thu Dec 10, 2020 1:10 pm have any of you rebalanced by selling equities or adding more bonds since the run up of stock market in the past month?

how often do you check your portfolio and how do you determine when to rebalance?

do you only rebalance at a certain time of the year?
I usually don’t rebalance by selling something and buying . Only rebalance when market drops big during bear market. Last time I rebalance like this gradually March and April of this year from bond/cash into my Total Stock market index funds International and Domestic. My natural rebalance is by adding new money into fund I would like to overweight, like International for example I do now. I adjusted amount a month ago my dollar cost average into International .
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Re: did you rebalance portfolio in the past month?

Post by StevieG72 »

No, but I should take a look at it. Bond yields are depressing, I paid off a small mortgage and am still overweight in stocks by roughly 5%.

Unfortunately I have run out of tax sheltered space for increasing bond holdings, this limits my options while trying to maintain a tax efficient portfolio.

On my to do list for this weekend!
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Re: did you rebalance portfolio in the past month?

Post by UpperNwGuy »

Nope. I'll review the numbers in January and see if any rebalancing needs to occur. Often the market does the work for me.
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Re: did you rebalance portfolio in the past month?

Post by Silverado »

bugleheadd wrote: Mon Dec 14, 2020 11:15 am its hard not to check allocations more often as the markets been volatile this year. i rebalanced into stocks back in feb and march.
But then, don’t you need to go back the other way by now?

I went to stocks in March, then back in September (just a couple percent of portfolio. This together with new contributions has kept us in balance). Year end bonuses sitting in checking right now, will deploy next week or so and will take that opportunity to move a bit more to bonds.
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