3 ms·
Despite these headlines, there are reasons that someone may want to rebalance their portfolio. Performance over time is not everything -- for instance, it is o
by kube-system 2y ago
Despite these headlines, there are reasons that someone may want to rebalance their portfolio. Performance over time is not everything -- for instance, it is often advisable for someone approaching retirement to rebalance into investments that are lower performing but more less volatile.
An S&P 500 index fund might give a reliable 20 year performance, but if you're cashing out next year, you're gambling on somewhere between a -40% and +60% return.
This is all to say, just because you have money in index funds doesn't necessarily mean they're the right index funds for your situation.
- bluGill 2y agoJust remember that as you near retirement odds are you have more than 10 years left - don't rebalance too far out of high preforming index funds
- thunky 2y ago> if you're cashing out next year, you're gambling on somewhere between a -40% and +60% return This is true but it's not a great idea to cash out all at once. Better to de-risk gradually, and only sell small lots when you need to fund expenses.