4 ms·

Any tips on the frequency of rebalancing the portfolio?

• throw0101a 6y ago
  Per Vanguard, when your asset allocation is ±5% out of whack: 80/20 -> 85/15 or 75/25. * https://www.vanguardcanada.ca/documents/best-practices-for-portfolio-rebalancing-brief.pdf https://www.vanguardcanada.ca/documents/best-practices-for-p... Or perhaps once a year if you happen to throw in a lump sum year-end or year-beginning. If you're using a tax-sheltered account (US: 401(k), IRA), the some of the capital gains considerations they mention are not relevant. If there's a lot of market turmoil then it may be worth checking your account quarterly: equities tank mid-March 2020, and so if you checked Q2 2020 (April), there's a good chance things would have been unbalanced, so rebalancing at that point would have resulted in a good starting point for the equities take-off that happened shortly after. Though generally the less you check your account, the better it probably is for your mental health.