http://www.thesimpledollar.com/2006/12/28/balancing-an-investment-portfolio-for-the-first-time/ Simple, applicable personal finance advice for the modern world Fri, 10 Feb 2012 08:34:37 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://www.thesimpledollar.com/2006/12/28/balancing-an-investment-portfolio-for-the-first-time/comment-page-1/#comment-663036 rodgerlvu Fri, 15 May 2009 06:23:32 +0000 http://www.thesimpledollar.com/2006/12/27/balancing-an-investment-portfolio-for-the-first-time/#comment-663036 um i think we share the same idea..thanks to you, trent, for telling me all what you think um i think we share the same idea..thanks to you, trent, for telling me all what you think

]]> http://www.thesimpledollar.com/2006/12/28/balancing-an-investment-portfolio-for-the-first-time/comment-page-1/#comment-630096 Tony Mahoon Fri, 17 Apr 2009 05:11:43 +0000 http://www.thesimpledollar.com/2006/12/27/balancing-an-investment-portfolio-for-the-first-time/#comment-630096 What about capital gains tax that you pay when you rebalance as well? I agree with Ralph, you should target your savings at the areas that are underfunded, rather than selling areas you have made gains in. What about capital gains tax that you pay when you rebalance as well? I agree with Ralph, you should target your savings at the areas that are underfunded, rather than selling areas you have made gains in.

]]> http://www.thesimpledollar.com/2006/12/28/balancing-an-investment-portfolio-for-the-first-time/comment-page-1/#comment-2074 Trent Fri, 29 Dec 2006 05:07:48 +0000 http://www.thesimpledollar.com/2006/12/27/balancing-an-investment-portfolio-for-the-first-time/#comment-2074 I agree with Ralph's points. Simple rules like the one above are useful for getting your feet wet and helping you decide what risk feels appropriate for you, not as a hard and fast rule. I agree with Ralph’s points. Simple rules like the one above are useful for getting your feet wet and helping you decide what risk feels appropriate for you, not as a hard and fast rule.

]]> http://www.thesimpledollar.com/2006/12/28/balancing-an-investment-portfolio-for-the-first-time/comment-page-1/#comment-2067 Ralph Morgan Fri, 29 Dec 2006 04:18:54 +0000 http://www.thesimpledollar.com/2006/12/27/balancing-an-investment-portfolio-for-the-first-time/#comment-2067 A couple of things 1. I'd watch the cost of switching funds around - between fees and "buy-sell" spreads on unit prices, it can cost a bit to rebalance this way. I usually just work out which area has become under-weight, and target my savings for the coming year into this area. 2. I don't agree with a simplistic rule for working out how much to invest in growth assets (eg. stocks) vs. bonds and fixed interest investments. You're much better off basing your asset allocation on your risk tolerance. A couple of things
1. I’d watch the cost of switching funds around – between fees and “buy-sell” spreads on unit prices, it can cost a bit to rebalance this way. I usually just work out which area has become under-weight, and target my savings for the coming year into this area.
2. I don’t agree with a simplistic rule for working out how much to invest in growth assets (eg. stocks) vs. bonds and fixed interest investments. You’re much better off basing your asset allocation on your risk tolerance.

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