Rebalancing question

[stellardoc1]

New attending from past few years.
Actively learning about investing, currently going through WCI course modules.

Have401K - when I started working, I put everything in VANGUARD TARGET RETIRE 2050 FUND.
I thought that I will eventually learn more and do the appropriate asset allocation.
If I want to rebalance the portfolio to 70% US Total market and 10 % bonds and 20 % International for e.g. (all Vanguard mutual funds), I assume I have to transfer all the money from the current target date 2050 fund to the aforementioned ones?
What are the risks provided there is no transaction cost.
Is there a risk there may be a taxable event if I do that?
Any cons to it for a newbie like me?

Ofcourse, I can put new money in to the others but since the Target Retire 2050 is autobalancing the assets, it makes sense to realign with my post tax brokerage account and adjust the percentages myself. I have a preliminary investment statement and am re balancing accordingly.

Newbie here, may be a stupid question and may not make sense but please help.

Yes, I don't have any bonds in my taxable (except muni bonds).

[Random1]

If all the funds are in a 401k, there should not be a taxable event. There may not be a good reason to do that anyway. If you want more exposure to non US markets , you can sell some of the fund and use the proceeds to go to what ever fund you want, or just put "new" money into and international fund. I assume all the funds you want to invest in are available to you in the 401k. If they are not I would consider just leaving the money in the fund.

I may be going against the grain here, but if you are in this for the long haul , I would not intentionally create a taxable event to rebalance . Just put new money to adjust your percentages.

[DocFi]

It seems like you have a taxable and a 401k account. I would assign an asset allocation based on the entirety of funds and then try to work out a tax-efficient placements of assets accordingly (for instance you may prefer to have your entire bond allocation inside the tax-deferred/ tax-advantaged accounts.

[Tim]

1234Total

	Vanguard Total Stock Market Index Fund Investor Shares	54.10%
	Vanguard Total International Stock Index Fund Investor Shares	36.70%
	Vanguard Total Bond Market II Index Fund Investor Shares†	6.50%
	Vanguard Total International Bond Index Fund Investor Shares	2.70%
	What is your appropriate AA? You don’t want to use a taxable to adjust a TDA to your desired allocation across all accounts. Choose the building blocks and rebalance in retirement accounts. The TDA benefit is auto rebalance.	100.00

[Peds]

Have 401K - when I started working, I put everything in VANGUARD TARGET RETIRE 2050 FUND.
-- literally a perfect plan. you could stop there for the next few years and be fine.

I thought that I will eventually learn more and do the appropriate asset allocation.
If I want to rebalance the portfolio to 70% US Total market and 10 % bonds and 20 % International for e.g. (all Vanguard mutual funds), I assume I have to transfer all the money from the current target date 2050 fund to the aforementioned ones?
-- yes

What are the risks provided there is no transaction cost.
-- risks is that you have to start managing your own AA.

Is there a risk there may be a taxable event if I do that?
-- not if inside tax protected accounts*

Any cons to it for a newbie like me?
-- either messing up, forgetting to rebalance, panic selling....

Of course, I can put new money in to the others but since the Target Retire 2050 is autobalancing the assets, it makes sense to realign with my post tax brokerage account and adjust the percentages myself. I have a preliminary investment statement and am re balancing accordingly.

Newbie here, may be a stupid question and may not make sense but please help.

Yes, I don't have any bonds in my taxable (except muni bonds).
-- TD2050 is <10% bonds. you shouldnt need any munis yet anyways.....

if you want actual specific advice post with this info: https://www.bogleheads.org/forum/viewtopic.php?t=6212

[mkintx]

"Any cons to it for a newbie like me?
-- either messing up, forgetting to rebalance, panic selling...."

What about the con of the taxes on the gains? If it's been a few years, mightn't this be considerable?