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Investing - Theory, News & General • Is Rebalancing Necessary?

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A lot of resources say you should rebalance your allocation e.g 70/30 stocks/ bonds quarterly or annually etc. However how necessary is this? Is holding a few years worth of cash/ bonds a viable alternative? As rebalancing a portfolio incurs brokerage fees and taxes on any capital gains
If you’ve kept your bond allocation consistent with your cushion against spending needs (10x, 15x, 20x annual burn, whatever you choose) and keep it that way over time, the rest can go into stocks.

Statistics: Posted by nyclon — Sun Jul 21, 2024 12:46 pm — Replies 47 — Views 8165



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