As we reach the end of my first year with an actual financial plan, it comes time for me to think about rebalancing. I originally had planned to rebalance once a year (as I can’t help but “tinker” as WCI says) or when things are off by more than an absolute 5%. But I am still early-ish in my accumulation phase, so all contributions during the year are at my desired asset allocation. I find I’m within 1% (give or take) of what my goals are. Not sure if it’s worth it when things are pretty close.
What do other people do? Rebalance no matter what or wait till it is far enough off from your asset allocation?
What do other people do? Rebalance no matter what or wait till it is far enough off from your asset allocation?
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