Comments on: Rebalancing my portfolio (Part I) http://www.kirkwalsh.com/blog/2006/04/04/rebalancing-my-portfolio-part-i/ Wed, 19 Nov 2008 12:39:48 +0000 http://wordpress.org/?v=2.6.3 By: Kirk http://www.kirkwalsh.com/blog/2006/04/04/rebalancing-my-portfolio-part-i/#comment-5 Kirk Wed, 05 Apr 2006 14:32:00 +0000 http://www.kirkwalsh.com/blog/?p=54#comment-5 I agree with you, somewhat. For me, total commissions equal less than 1.5% of my portfolio per year. I believe that I can do better than that by reinvesting and further diversifying every quarter rather than allowing the funds to sit in a money market fund for a year. As always, your mileage may vary. Yearly rebalancing may be right for some people, for me I believe that diversifying my portfolio on a quarterly basis is right for me.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('5','Kirk'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('5','Kirk','I agree with you, somewhat. For me, total commissions equal less than 1.5% of my portfolio per year. I believe that I can do better than that by reinvesting and further diversifying every quarter rather than allowing the funds to sit in a money market fund for a year. \n\nAs always, your mileage may vary. Yearly rebalancing may be right for some people, for me I believe that diversifying my portfolio on a quarterly basis is right for me.'); return false;">Quote</a></div> I agree with you, somewhat. For me, total commissions equal less than 1.5% of my portfolio per year. I believe that I can do better than that by reinvesting and further diversifying every quarter rather than allowing the funds to sit in a money market fund for a year.

As always, your mileage may vary. Yearly rebalancing may be right for some people, for me I believe that diversifying my portfolio on a quarterly basis is right for me.

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]]> By: Market Participant http://www.kirkwalsh.com/blog/2006/04/04/rebalancing-my-portfolio-part-i/#comment-4 Market Participant Wed, 05 Apr 2006 08:20:00 +0000 http://www.kirkwalsh.com/blog/?p=54#comment-4 I think you have to be careful about rebalancing too much because the trading/switching costs that you can incur. Given that most IRA's are set up to sweep cash in the account into a Money Market account, letting dividends pile up doesn't really cost you much. <a HREF="http://gewinnvortrag.blogspot.com/" rel="nofollow">Market Participant</a><div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('4','Market Participant'); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('4','Market Participant','I think you have to be careful about rebalancing too much because the trading\/switching costs that you can incur. \n\nGiven that most IRA\'s are set up to sweep cash in the account into a Money Market account, letting dividends pile up doesn\'t really cost you much. \n\n<a HREF=\"http:\/\/gewinnvortrag.blogspot.com\/\" rel=\"nofollow\">Market Participant<\/a>'); return false;">Quote</a></div> I think you have to be careful about rebalancing too much because the trading/switching costs that you can incur.

Given that most IRA’s are set up to sweep cash in the account into a Money Market account, letting dividends pile up doesn’t really cost you much.

Market Participant

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