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I'm 51 and was planning on retiring next year. Well, the financial crisis decided that I'm to work and save at least a few years more.

My 60% equity, 30% fixed income, 10% hard assets (gold and commodities) all index ETF portfolio has declined 35% since I rebalanced last December. I now have 41% equities, 47% fixed income, 12% hard assets.

Near the end of December, it will be rebalance time. I'm going to over balance equites to a tune of 0.1% for every 1% decrease in my equity portion.

Since my equites are down 56% as of today, that means I would increase my equity allocation from 41% to 65.6%. I'll round to 66%. Thus, if I were to dynamically rebalance today, my port would look like this: 66% equities, 24% fixed income, 10% hard assets.
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