4 ms·
On the question of long/short gains, you are certainly correct to say there is a difference, but it's also likely that rebalancing will only trade a fairly smal
by jannotti 12y ago
On the question of long/short gains, you are certainly correct to say there is a difference, but it's also likely that rebalancing will only trade a fairly small portion of your portfolio.
A neat way to do this would be to use your IRA only for the balancing portion. So suppose you have 100k "normal" money invest and 10k in an IRA. Allocate it all even (in both accounts), and when rebalancing needs to occur, do it in the IRA. The normal account stays unbalanced, but the IRA goes way out of balance in the other direction to make up for it. It'd be interesting to see how much "normal" money could be balanced by a $1 of IRA money, historically.