Each month, I have money transferred into my TIRA automatically, but I go in manually to buy the funds because I don't like the auto trading options that Schwab offers. As a result I am assessing my Asset Allocation monthly, and I deposit funds such that when I complete the transaction, my account closely matches my desired AA. In this way, I've never had to re-balance the account.
Is there a hidden risk to this method? Do others do this?
Desired AA: 20% bond 80% Stock
Balance before monthly deposit of $1,000: Total - $9,000 --> $1,500 Bond (17%) || $7,500 Stock (83%)
Balance after monthly deposit of $1,000: $10,000 --> $2,000 Bond (20%) || $8,000 Stock (80%)