Retirement...

[JEB]

When you rebalance your portfolio are you charged commisions?
I wouldn't rebalance till you're old or unless you are drastically lopsided.

[AK-74me]

Originally Posted by JEB

When you rebalance your portfolio are you charged commisions?
I wouldn't rebalance till you're old or unless you are drastically lopsided.

No, you are only charged if you sell shares that you've owned less than 90 days and that is only on a couple of our funds, the charge is less than 1%, but like I said it is really easy to avoid. The only rebalancing that really has to be done is selling company stock and buying shares of mutuals, because of the run our company stock has seen it is hard not to get overweighted in it. I am a little jealous though of some of the people who didn't know what they were doing and had 50% or more in our company stock to see it go up 400% since 2002.

[marianne]

Auto rebalancing is good if you:
1) monkey around with your allocations too much
2) don't monkey around with your allocations enough

Basically if you don't want to worry about your portfolio auto rebalancing is a very good thing. My fin consultant recommended that I do it because I monkey around with my allocations too much - but I won't do it because I'm a control freak :)