Gyroscopic Investing

I don't mean at what percent. We all know the 35/15 bands.

I mean what time of year?

I was reading an article today that said most people re-balance in January. If this be true then I'm thinking it isn't such a great idea. Money seems to be moving a little from stocks to gold and bonds right now so is this just the effect of people re-balancing their portfolios, driving up the price of the lagging assets?

Maybe should wait until later on in the year and not follow the herd (too late for me this year because I already started but maybe next year I'll do it in June instead).

If you're doing the bands, I don't think you also need to rebalance once a year. You can just go without rebalancing.
Or are you referring to using new cash?

If you are asking about new cash - I asked a similar question a few months ago.  The consensus was that you should just add new money in the 25/25/25/25 proportions, and not try to rebalance anything until your portfolio hits the 15/35 bands.

mortalpawn wrote: If you are asking about new cash - I asked a similar question a few months ago.  The consensus was that you should just add new money in the 25/25/25/25 proportions, and not try to rebalance anything until your portfolio hits the 15/35 bands.

I know this is the "backtested optimal" way to do it, but I just know it's going to make my taxes a pain in the arse.

dragoncar wrote:

mortalpawn wrote: If you are asking about new cash - I asked a similar question a few months ago.  The consensus was that you should just add new money in the 25/25/25/25 proportions, and not try to rebalance anything until your portfolio hits the 15/35 bands.

I know this is the "backtested optimal" way to do it, but I just know it's going to make my taxes a pain in the arse.

If you're in a taxable account then add to the lagging asset(s).  It is far better to delay rebalancing for as long as possible.  By delaying the cap gains you are essentially receiving an interest free loan from the government to invest in the PP.

In a tax sheltered account I'd do whichever was more convenient.  There might be a slight edge to the 4x25%.

With new money I like to buy the lagging asset once every month or two. That keeps the portfolio naturally balanced most of the time while avoiding any capital gains events.

For a larger rebalance, I like to plan it out in December. That allows me to split any capital gains between two tax years if necessary to remain in the more advantageous tax bracket.