TrixAre4Kids
Familiar Member
'Not all those who wander are lost' - J. R. R. Tolkien
Joined: Dec 22, 2010 22:33:15 GMT -5
Posts: 877
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Post by TrixAre4Kids on Jan 21, 2011 15:14:08 GMT -5
I went to see my finance guy (YES I have a finance guy!) and I have rebalanced my 401k as per his directions. It is still 60/40 equity/fixed income. I now have fewer bonds and more TIPS and interest income. Equities have more International than before. They direct my Trad IRA/Roth accounts, which are 80/20. Whoot Whoot! That is all, folks! (I know you guys don't really give a rip, but just thought I'd say  ) <<My first thread on new board>> |
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Post by Savoir Faire-Demogague in NJ on Jan 21, 2011 15:21:47 GMT -5
You are kind of young to be 40% in fixed income for your 401K.
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sunuva
Initiate Member
Joined: Dec 20, 2010 16:20:28 GMT -5
Posts: 77
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Post by sunuva on Jan 21, 2011 15:34:42 GMT -5
As some may recall, I rebalance my portfolio mostly by buying stocks that performed less well than other stocks within my portfolio. My rebalancing for January this year was pretty straight forward - Kimberly Clark was stagnant last year (actually lost about 1.5%). I increased my holdings in that one - actually increased my holdings rather significantly (added 25% more to my current holdings in the company). The rest (17 others) have held up rather well and some significantly well - the transportation related ones are up 66% collectively
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telephus44
Well-Known Member
Joined: Dec 23, 2010 10:20:21 GMT -5
Posts: 1,259
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Post by telephus44 on Jan 21, 2011 16:49:45 GMT -5
I was always taught to rebalance a portfolio with new money rather than moving existing funds.
Thoughts?
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Post by Savoir Faire-Demogague in NJ on Jan 21, 2011 16:55:40 GMT -5
I was always taught to rebalance a portfolio with new money rather than moving existing funds.
Thoughts?
Depends. So many variables are involved. One could be changing their allocation due to other factors.
If you are dollar cost averaging like you would for a 401K, you may want to maintain the allocation of your monthly contributions, because it is just the total portfolio that is out of kilter.
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lynnerself
Senior Member
Joined: Jan 3, 2011 11:42:29 GMT -5
Posts: 4,166
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Post by lynnerself on Jan 21, 2011 17:04:23 GMT -5
My 401k is set to auto re-balance every 6 months.
That is if I want 10 % in XYZ fund and it has gone up or down, it is brought back to 10 %. Essentially selling good performers and buying the low ones. (Sounds counter productive doesn't it?)
I thought this was fairly standard.
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Plain Old Petunia
Senior Member
bloom where you are planted
Joined: Dec 21, 2010 2:09:44 GMT -5
Posts: 4,840
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Post by Plain Old Petunia on Jan 21, 2011 17:42:52 GMT -5
I was always taught to rebalance a portfolio with new money rather than moving existing funds. Thoughts? In a taxable account, if selling would be at a gain, then yes, rebalance with new money. In a 401k or IRA, it doesn't matter how you rebalance. Trix - Good for you on the re-balancing.  |
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