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Learning, Sharing, and Teaching => Investor Alley => Topic started by: mohawkbrah on July 08, 2015, 01:01:38 AM

Title: UK feeling the burn
Post by: mohawkbrah on July 08, 2015, 01:01:38 AM

Vanguard ftse index down 15% from it's peak in may


ouchy. and no new money coming in for me to invest in :(


greece plz stahp


i've decided to sell some stock of my vanguard us fund to buy more into my UK one. Right decision or a bit fool hardy to time the market?

Title: Re: UK feeling the burn
Post by: Retire-Canada on July 08, 2015, 08:34:16 AM

Quote from: mohawkbrah on July 08, 2015, 01:01:38 AM

i've decided to sell some stock of my vanguard us fund to buy more into my UK one. Right decision or a bit fool hardy to time the market?

Well your asset allocation is probably out of whack if you've got a 15% drop in a significant part of your allocation. So selling to rebalance your investments is not market timing.

Title: Re: UK feeling the burn
Post by: mohawkbrah on July 08, 2015, 12:15:14 PM

well it's an index fund for the UK by vanguard. not much i can do to re-allocate an entire market. i didn't say my whole portfolio dropped 15% by the way just that fund.

Title: Re: UK feeling the burn
Post by: iamlindoro on July 08, 2015, 04:38:23 PM

Quote from: mohawkbrah on July 08, 2015, 12:15:14 PM

well it's an index fund for the UK by vanguard. not much i can do to re-allocate an entire market. i didn't say my whole portfolio dropped 15% by the way just that fund.

Your estimated FI date is 11 years away.  Why do you care?

Title: Re: UK feeling the burn
Post by: Retire-Canada on July 08, 2015, 05:45:34 PM

Quote from: mohawkbrah on July 08, 2015, 12:15:14 PM

well it's an index fund for the UK by vanguard. not much i can do to re-allocate an entire market. i didn't say my whole portfolio dropped 15% by the way just that fund.

If you own multiple funds and one drops 15% than selling some of the other fund(s) to rebalance the overall asset allocation of your portfolio is not market timing.

If your whole portfolio went down 15% across the board there would not be an imbalance in your asset allocation.

Title: Re: UK feeling the burn
Post by: Heckler on July 11, 2015, 01:50:41 PM

Quote from: Vikb on July 08, 2015, 05:45:34 PM

If you own multiple funds and one drops 15% than sellin some of the other fund(s) to rebalance the overall asset allocation of your portfolio is not market timing.

but before doing so, evaluate the trading costs to do so, and include a rebalancing plan in your Investment Policy Statement.

"I will rebalance annually by selling all my annual contributions made to my work sponsored index mutual funds plan and transferring them to my self directed index etfs accounts.  I am able to sell and transfer once per year for no cost. "


I had to remind myself of this when I considered selling my US index to buy Canadian index recently.  No deal.

Title: Re: UK feeling the burn
Post by: frugledoc on July 11, 2015, 02:28:24 PM

I'm currently building up a 100 k stake in Vanguard 100 Life Strategy because I don't have the mental energy to do this rebalancing crap anymore.

Once I have 100k I can invest directly with vanguard and cut out the 0.45% middle man fee.