The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/author-wisenlucky-date-9601-756-am-number-15697043.aspx

Subject:  Re: Taxable vs tax Defered Date:  9/6/2001  11:04 AM
Author:  rkmacdonald Number:  31831 of 75890

Author: wisenlucky Date: 9/6/01 7:56 AM Number: 31820
I don't think the first comment above relates to getting in or out of the market. Part of an effective asset allocation is a periodic rebalancing. If you try to rebalance a portfolio in a taxable account, you will suffer substantial tax consequences. If you then choose not to rebalance, you could suffer loss of returns if your allocation gets out of whack.

Exactly right!! I wasn't clear in my original statement.

I also don't believe that anyone can time the market, but you surely need to rebalance regularly, and you may be hesitant to do that if you will be hit by big capital gains taxes.

Russ
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us