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re: How often do you make contributions to your portfolio?

Posted on 1/10/17 at 1:07 pm to
Posted by Books
BR
Member since Jun 2005
11174 posts
Posted on 1/10/17 at 1:07 pm to
How are you allocating those $10k amounts relative to your AA? My issue is that I often have limited space in my tax-protected accounts--and in turn the amount of bonds I can buy--so if making periodic $10k contributions, I will consistently end up out of alignment by purchasing equities everytime.

In that case, my rebalancing will be due in large part to the contributions each year, as opposed to market fluctuations. Would that even matter?
Posted by Hawkeye95
Member since Dec 2013
20293 posts
Posted on 1/10/17 at 1:18 pm to
quote:

How are you allocating those $10k amounts relative to your AA? My issue is that I often have limited space in my tax-protected accounts--and in turn the amount of bonds I can buy--so if making periodic $10k contributions, I will consistently end up out of alignment by purchasing equities everytime.

In that case, my rebalancing will be due in large part to the contributions each year, as opposed to market fluctuations. Would that even matter?

you could always buy ETFs/mutual funds for bonds, they exist.

I will often save up to 20k to buy a bond fwiw.

This was a good prompt to go buy some stuff, I had a good $15k sitting in my trading account.
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