Just be sure to view the new account you open as part of the whole portfolio picture.
For example, if you have a 70/30 split of stocks and bonds now, and open up a Vanguard International Stock Index fund, and put 5K into it, you need to adjust the rest of your holdings to maintain the 70/30 split.
Thank you! And that is the part that gives me a headache. lol
Yeah... Me too, at first. But its really pretty simple.
Total Portfolio: 30% Bonds, 70% Stocks (25% International 75% Domestic)
$100,000 total
(70)(.25) = 17.5% (100,000) = $17,500 International stocks
(70)(.75) = 52.5% (100,000) = $52,500 Domestic stocks
30.0% (100,000) = $30,000 Bonds
$100,000 Total.
Of course, you might want to have more bonds, say 40%.. or less international, etc. Then you just adjust the multipliers accordingly.
Also, bonds in tax advantaged accounts. And international, if you want any, in your taxable accounts. Because then you get the foreign tax credit.
Anything in your taxable account, set the capital gains to be paid out to your checking account, or money market. Not reinvested automatically. Then use that money for rebalancing.
The tricky part is figuring out how to divide everything up in your differing accounts...