No. of Recommendations: 1
Last night I spent a bunch of time just figuring out what percentage I have in what kind of asset.

I have narrowed my investments down to 5 asset classes (which seems reasonable and easy to keep track of).

Those Asset Classes (for those who are interested in such things) are:

1: Money Market (Cash and Near Cash)
2: US Equities (Large Cap and Small Cap)
3: International Equities (Growth Stocks and Emerging Markets)
4: Commodities (What I call a commodity play in two different Vanguard specialized funds)
5: Future Pensions and Social Security


That last class doesn't require any attention since there is no re-balancing involved.

But as I was looking at the breakdown in percentages last night I was surprised to find that, since my really big re-allocation last May, my funds have performed rather evenly such that they are only under or over my target percentage for them by two or three percent. Well... one long-held fund is a little top-heavy, but I can take care of that easily enough later.

I've decided to take a "re-balancing" look at my holdings every May and again every September -- and do any minor re-balancings at that time. This should minimize any major tax bills and keep my portfolio healthy.

There is an article in this month's Money Magazine that stresses the importance of re-balancing your portfolio to minimize downturns and keep your portfolio healthy. Seems like a really good thing to do to me.

How often do the rest of you take a critical look at your portfolio and re-balance it?

AM
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement