So I've been playing a little catch-up on the financial literacy front, and there's a question that's been bothering me a bit re: rebalancing.
I get the pros: it keeps your asset allocation on point, and it forces you to sell high/buy low. But it also seems like there are a fair amount of cons also: rebalancing seems like a form of churn that will increase your taxes as well as add whatever brokerage fees you accumulate.
What general guidelines do people use for rebalancing? When, how often, etc?
I get the pros: it keeps your asset allocation on point, and it forces you to sell high/buy low. But it also seems like there are a fair amount of cons also: rebalancing seems like a form of churn that will increase your taxes as well as add whatever brokerage fees you accumulate.
What general guidelines do people use for rebalancing? When, how often, etc?
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