Re: Rebalancing Portfolio

Sep 21, 2007 1 Replies

" snipped-for-privacy@gmail.com" wrote: , Ted Aaronson etc)




>Going forward I want to make my portfolio mimick one of those. However
>if I do that I will have to do fund to fund transfers which would
>incur short term or long term capital gains.
>
>Should I make the portfolio mix to mimick the above mentioned ideas
>and take one time capital gains hit?

Are you continuing to invest? Do you expect to include your current funds in the new asset allocation? If so, just invest new money in the new funds until you reach the right mix.


If you currently have funds that you do not expect to hold long term, go ahead and sell them and invest in the new funds. If some the funds you plan to sell have gains and will become long term fairly soon, hold off selling them to get the favorable tax treatment.


-- Doug


-- Doug



Another thing you can do to help rebalance (it won't come close to doing it on its own, but it can help prevent things getting even more skewed) is in the funds where you are overweighted, stop reinvesting distributions and instead have those distributions reinvested in the underweighted funds.

Of course if your funds in question throw off no or almost no distributions, this won't do very much :)

-- Rich Carreiro snipped-for-privacy@rlcarr.com

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required