rebalancing

Reacting to a Stock Market Increase

by Michael on Jan 8, 2014 · 2 comments

A reader named Jorio recently wrote in to ask: The stock market has skyrocketed. How can I harvest some of the gains and protect them from a “bubble burst”? Indeed, 2013 saw a huge runup in the stock market, with the S&P 500 rising nearly 30% and the Dow increasing […]

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Setting Financial Goals for 2014

by Michael on Jan 1, 2014

Welcome to 2014! I’m not sure about you, but we don’t have any major, life-changing resolutions for the year ahead. That said… We do have some financial goals for the next 12 months. What sort of goals? Since we don’t have any debt, we’re primarily focused on our investment accounts.

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A reader named Max recently e-mailed to ask a question about Vanguard’s frequent trading policy. In his message, he wrote the following: Hi. I have a quick question. I was just rebalancing some of our Vanguard mutual funds when I ran into a warning about their frequent trading policy. Apparently […]

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Our Asset Allocation Spreadsheet

by Michael on Aug 14, 2013 · 3 comments

Okay… As requested, I’ve pulled together a generic version of the asset allocation spreadsheet that I mentioned in my post about deciding when to rebalance. While I keep mine in Google Docs, I discovered some limitations that impacted the flexibility of the spreadsheet when I was building the generic version […]

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I’ve talked in the past about why you should rebalance your portfolio. In short, you do so to maintain your desired risk profile. But how do you decide when to rebalance? While it’s good to keep things in check, there’s no sense in going overboard. While some rebalance at set […]

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Dividends make up a substantial fraction of the returns on many investments, and most of us reinvest them — at least in our early years. The easiest way to reinvest your dividends is to automate the process. Simply direct that money straight back into whatever produced it. And yet… My […]

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Why Rebalance Your Portfolio?

by Michael on Nov 7, 2012 · 1 comment

The vast majority of individual investors are aware that you should periodically rebalance your investment portfolio. While much has been written about rebalancing strategies — when and how to rebalance your portfolio — less attention is typically paid to why you should rebalance. Or, perhaps more accurately, I should say […]

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