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hi folks, I am learning a lot from this forum - and also see how much I have to learn!
Question re rebalancing. I'm having trouble understanding any difference between rebalancing methods: 1) selling over-performers / buying under-performers, versus 2) just adding money to the under performer (bonds or whatever). Is it sufficient to add money to the latter to get back to the desired allocation?
Haven't been great about investing regularly to take advantage of DCA; what we've been doing is seeing cash build up and then moving money over to our Vanguard taxable every ~1-2 months, but with the market run-up we have found that to maintain an 80/20 allocation we just add most of the money to bonds.
My fee only FA is advising me to sell some stocks *in addition* to adding more to bonds. But does that make sense? Wouldn't selling stocks also trigger fees and taxes? Or, I am missing something.
I plan to try to semi-automate the taxable account investing this year with my new job/higher salary. (we already max out retirement/backdoor roth)
TIA!
Question re rebalancing. I'm having trouble understanding any difference between rebalancing methods: 1) selling over-performers / buying under-performers, versus 2) just adding money to the under performer (bonds or whatever). Is it sufficient to add money to the latter to get back to the desired allocation?
Haven't been great about investing regularly to take advantage of DCA; what we've been doing is seeing cash build up and then moving money over to our Vanguard taxable every ~1-2 months, but with the market run-up we have found that to maintain an 80/20 allocation we just add most of the money to bonds.
My fee only FA is advising me to sell some stocks *in addition* to adding more to bonds. But does that make sense? Wouldn't selling stocks also trigger fees and taxes? Or, I am missing something.
I plan to try to semi-automate the taxable account investing this year with my new job/higher salary. (we already max out retirement/backdoor roth)
TIA!
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