Author Topic: Rebalance during averaging  (Read 1143 times)


  • 5 O'Clock Shadow
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  • Posts: 31
Rebalance during averaging
« on: January 25, 2015, 03:05:11 PM »
First time investor, started putting money into funds (index) June 2014 and trying to create a portfolio and averaging into the market, and indeed learning as I go. Have discovered that I am my worst enemy, but haven't been excessively burnt yet.

I have an index fund, which I for whatever reason chose to overbuy instead of following my allocation plan. (OK Reason: First bought at all time high, then when it fell quite a lot, decided to put twice the amount in at that level to "cover losses").

I put in a fixed amount every second week according to the balance between the various index funds. Now since I've overbought on that fund I won't be able to put money in it for another 2 months. In the meantime the fund is now priced so my gains on that fund is exactly 0.

Question, do you think I should bother about selling the excess so that it can partake in the balance as I continue averaging into the market?
I realize 2 months is not long, but this index has been extremely volatile (OSEBX). Two 20% percent drops with almost full recovery in the last 3 months only.

This is a not a big part of my portfolio at 9%, but money is money :)

Any suggestions much appreciated.


  • Bristles
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  • Posts: 464
Re: Rebalance during averaging
« Reply #1 on: January 26, 2015, 07:28:31 AM »
Quick looking at your investments. If you are diversified then you should be able to check every month/quarter/year (your preference).

Don't do anything right now. When your next contribution cycle comes around analyze what you need to do then. Find funds and an asset allocation strategy that you don't worry constantly about, then keep adding money until the day you retire.