How often should you rebalance a 2 fund portfolio?

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passive101
Posts: 630
Joined: Tue May 05, 2020 2:47 pm

How often should you rebalance a 2 fund portfolio?

Post by passive101 »

I switched my Roth IRA in Vanguard to 90% VTWAX and 10% VSIAX.

How often should I rebalance them? Or how far away from the 90/10 split should I let them get?

I set it up to automatically invest 90/10 for each paycheck I get when it funds the account.
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Wiggums
Posts: 7051
Joined: Thu Jan 31, 2019 7:02 am

Re: How often should you rebalance a 2 fund portfolio?

Post by Wiggums »

Rebalancing will help you stick to your investing plan regardless of what the market does, helping you to stick to your risk tolerance levels. I only rebalance once a year.
"I started with nothing and I still have most of it left."
LeftCoastIV
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Joined: Wed May 01, 2019 7:19 pm

Re: How often should you rebalance a 2 fund portfolio?

Post by LeftCoastIV »

Are all of your investments in your Roth? Typically you would include all of your investments (e.g. 401K, IRA, taxable) for AA setting and rebalancing purposes.
Marseille07
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Joined: Fri Nov 06, 2020 12:41 pm

Re: How often should you rebalance a 2 fund portfolio?

Post by Marseille07 »

LeftCoastIV wrote: Tue Oct 26, 2021 6:36 am Are all of your investments in your Roth? Typically you would include all of your investments (e.g. 401K, IRA, taxable) for AA setting and rebalancing purposes.
I agree with this person. 90/10 is not just your Roth, should be everything across the board. As such, I would not recommend investing your paycheck 90/10. Just invest wherever needs investing at the moment to keep your overall AA 90/10 (or whatever you intend to maintain).
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