Author Topic: reviewing a/o changing investment allocations  (Read 2074 times)

KodeBlue

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reviewing a/o changing investment allocations
« on: August 28, 2015, 09:53:07 AM »
How often do most folks review and change their investment allocations? For the last few weeks I've been studying different strategies for asset allocation in retirement accts. I had planned to review and possibly change the allocations in my 401(k).
Given the events of the last week, should I hold off and wait until the market stabilizes?
How often should one assess their portfolio?

Louisville

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Re: reviewing a/o changing investment allocations
« Reply #1 on: August 28, 2015, 10:04:34 AM »
How often should you change your asset allocation? I think most people here would say "Never".  Find one that's has your preferred balance of volitility and return, and stick with it.  Some do a 'glide path' of gradually upping the percentage of bonds as they near draw down phase.

Are you really asking how often you should rebalance to stay within your asset allocation?

johnny847

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Re: reviewing a/o changing investment allocations
« Reply #2 on: August 31, 2015, 07:15:46 AM »
What Louisville said

Kaspian

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Re: reviewing a/o changing investment allocations
« Reply #3 on: September 04, 2015, 11:47:34 AM »
Thirded.  When you began doing this did your Personal Investment Plan say that you should "study, review, and change allocations the week of September 1st 2015 if the markets are volatile"?  Probably not?  Then stop tinkering.   

I'm beginning to sound like either a parrot in Jack Bogle's office or a member of the Do Nothing Police Force.  :)

NorCal

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Re: reviewing a/o changing investment allocations
« Reply #4 on: September 04, 2015, 11:54:40 AM »
Step #1 is to write out an investment policy that defines when you will review your allocations.  It is best to do it on a plan. 

Some will argue that it's best to do it annually or every other year.  Others say you should do it once your portfolio gets out of balance by a certain percentage.

My opinion is that it doesn't matter a whole lot, as long as you have a plan that you're consistent about.

I personally have different policies for different accounts.  They are:

1.  My IRA's and current 401k:  Reviewed and rebalanced annually.
2.  An old, large 401k:  They send me a notice to re-balance anytime the portfolio is out of target-allocation by more than 5%.
3.  My taxable brokerage:  I add a lot to this account every month, so I buy new shares in a way that always moves my portfolio towards the target balance.