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Author: GWPotter Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75859  
Subject: Re: A question about the detail of rebalancing. Date: 3/7/2014 9:56 AM
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I am not sure you have provided enough information. That said, I have two comments:

#1 Why are you rebalancing? How frequently? Are you acting because it is recommended by "experts"? I suggest you look up for data, not "theory" but data on rebalancing. I am sure there are other sets of data, but the only set I am aware of says decreasing the frequency of rebalancing increases the portfolio's return, with the maximum return at over 6 years. This is William Bengen's data.

#2 Instead of selling and buying, there is another option - put new funds in a specific allocation or if you are withdrawing funds, withdraw from a specific allocation.
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