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I have read in RYR about re-balancing on a yearly basis. Does anyone have any data as to the benefits (or not) of more frequent re-balancing? Edward Jones has a management branch that touts daily re-balancing in managing your portfolio. I'm skeptical of that claim being beneficial.
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Scott8147: "I have read in RYR about re-balancing on a yearly basis. Does anyone have any data as to the benefits (or not) of more frequent re-balancing? Edward Jones has a management branch that touts daily re-balancing in managing your portfolio. I'm skeptical of that claim being beneficial."

Beneficial to whom? I am certain that EJ would enjoy the brokerage fees resulting from daily rebalancing. Your tax accountant would love all those transactions, too.

Regards, JAFO
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You could look here http://www.early-retirement.org/forums/f28/poll-how-often-do... and see what others do. And I'm sure you'd find more info about re-balancing on that site.

culcha
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Sorry, I wasn't real clear on this. The total charges from Edward Jones on this runs about 1.50% per year on the balance invested and since it's in a retirement account, my accountant won't be hassled. So forgetting taxes and charges, the question is if daily re-balancing helps or hurts returns?
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Scott8147: "Sorry, I wasn't real clear on this. The total charges from Edward Jones on this runs about 1.50% per year on the balance invested and since it's in a retirement account, my accountant won't be hassled. So forgetting taxes and charges, the question is if daily re-balancing helps or hurts returns?'

Do not know, but EJ should be able to offer evidence in support of tis proposition, but if you are paying 1.5% of AUM, WOW.

The drag on return is immense. After ten years you will have given them 1/7 of your portfolio. After 30 years, you will have given EJ Nearly half (45%) of the value of your portfolio.

What does EJ do that justifies those fees?

I hope that intercst responds, because he has written far more about pricey fees than I can remember.

Regards,
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https://advisors.vanguard.com/iam/pdf/ICRPR.pdf?cbdForceDoma...

This paper discusses rebalancing including frequency issues.


Bob
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http://www.tdainstitutional.com/pdf/Opportunistic_Rebalancin...

I’m not sure this one addresses the frequency of rebalancing, but, may be of interest.

Bob
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