Happy Rebalancing Day!

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bikeeagle1
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Happy Rebalancing Day!

Post by bikeeagle1 »

For those of us who do our annual rebalancing on the first trading day of the year, I just wanted to say enjoy and congratulate yourself for sticking with your plan!

8-)
UpperNwGuy
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Re: Happy Rebalancing Day!

Post by UpperNwGuy »

Not me. I received some new money in early December, so I used it to bring all my funds into alignment with my targets. I'm happy because I don't have sell anything this time around. I hate the capital gains.
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firebirdparts
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Re: Happy Rebalancing Day!

Post by firebirdparts »

Happy Rebalancing Day! I admit that I am tempted to fiddle with my accounts. Waiting is good for me.
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livesoft
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Re: Happy Rebalancing Day!

Post by livesoft »

The shares of BND that i bought this morning will outperform for 2022 all shares of BND that anybody owned before this morning by 0.5%.
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bikeeagle1
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Re: Happy Rebalancing Day!

Post by bikeeagle1 »

Maybe I should have started this thread back in December and called it "Happy Rebalancing Season", because it occurs to me that some folks prefer to rebalance at the end of the year. I'm just curious, how many prefer the end of December? I settled on the beginning of the year because I tend to be more distracted during the holidays. And maybe a little bit hungover. Lol.
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bikeeagle1
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Re: Happy Rebalancing Day!

Post by bikeeagle1 »

Of course, the main thing is to just pick whatever schedule you like and stick to it. I always like to start out the year with a freshly rebalanced account. Plus it makes for a New Years resolution that's easy to keep! Now I can be a slacker for the rest of the year.

8-)
Monsterflockster
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Re: Happy Rebalancing Day!

Post by Monsterflockster »

UpperNwGuy wrote: Mon Jan 03, 2022 8:58 am I hate the capital gains.
I prefer to make money than lose it. Much rather pay capital gains than have to tax loss harvest.
UpperNwGuy
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Re: Happy Rebalancing Day!

Post by UpperNwGuy »

Monsterflockster wrote: Mon Jan 03, 2022 12:41 pm
UpperNwGuy wrote: Mon Jan 03, 2022 8:58 am I hate the capital gains.
I prefer to make money than lose it. Much rather pay capital gains than have to tax loss harvest.
Of course you do! And so do I.

You missed my point completely. I was expressing a preference for bringing my allocation back into balance through the addition of new money as opposed to selling winners to buy losers, incurring capital gains in the process. This year I was fortunate in receiving a small unexpected windfall in early December. That doesn't happen most years. In normal years I do what you do.

I stick by my original statement that I try to avoid selling because I hate the capital gains.
solarcub
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Re: Happy Rebalancing Day!

Post by solarcub »

Having advanced somewhat in years, I just re-balanced to 70/30, highest bond allocation I have ever had. It was kind of painful. I can't see going any higher.
pizzy
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Re: Happy Rebalancing Day!

Post by pizzy »

bikeeagle1 wrote: Mon Jan 03, 2022 12:38 pm Of course, the main thing is to just pick whatever schedule you like and stick to it. I always like to start out the year with a freshly rebalanced account. Plus it makes for a New Years resolution that's easy to keep! Now I can be a slacker for the rest of the year.

8-)
Do you:

a) only rebalance in January

b) rebalance in January no matter what + during the year if your allocation is off by X?

If b) what is your X?
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rkhusky
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Re: Happy Rebalancing Day!

Post by rkhusky »

I like rebalancing all year long.
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bikeeagle1
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Re: Happy Rebalancing Day!

Post by bikeeagle1 »

pizzy wrote: Mon Jan 03, 2022 5:27 pm Do you:

a) only rebalance in January

b) rebalance in January no matter what + during the year if your allocation is off by X?

If b) what is your X?
Only in January. Using portfolio visualizer, I looked at other rebalancing methods and found that just doing it annually had the highest return and the least drawdowns. I suppose that might depend on your portfolio though. I use the Golden Butterfly which is different from the usual.
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grabiner
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Re: Happy Rebalancing Day!

Post by grabiner »

bikeeagle1 wrote: Mon Jan 03, 2022 8:52 am For those of us who do our annual rebalancing on the first trading day of the year, I just wanted to say enjoy and congratulate yourself for sticking with your plan!
I do the same thing. The reason I rebalance in January is that I make my IRA contribution in January, so I have to look at my whole portfolio to decide where the IRA contribution goes.

I also make this the day that I review my IPS, and change my asset allocation according to the glidepath. This year, there was a significant rebalance; my target bond allocation went from 14% to 16%, and the 2021 rising stock market had taken it down to 11%, so I sold a fair amount of stock in my employer plan.

I didn't do it on January 3 this year because I was traveling; I did the rebalance and IRA contribution on January 5.
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