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 Asset Allocation Investing using US ETF, Basic approach to asset Allocation ETF

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kevyeoh
post Aug 23 2015, 10:58 PM

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If i understand correctly... u need to do rebalancing once a year so it depends on when will be his yearly rebalancing... no need worry how now...

QUOTE(MNet @ Aug 23 2015, 08:06 PM)
so how now?
have u sold ur bond and buy more equity etf?
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kevyeoh
post Aug 26 2015, 10:42 PM

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Hi dreamer,

thanks for the sharing. For the 5/25, it is your own personal rule is it or is it based on general rule of thumb? i did not come across any article mention about this 5/25 rule...

Anyway, for asset that is 20% of portfolio, can you elaborate why 5/25 is the same number?
i am not putting 20/80 allocation so i will never have this issue but just wondering why you mention it is the same number.

thanks.

QUOTE(dreamer101 @ Aug 24 2015, 09:55 PM)
Folks,

I do both.

1) I re-balance once a year.

2) I may re-balance if the movement is too large.  I do 5/25 band re-balancing.

    5 -> If the asset went up or down more than 5% of the allocation.  For example, from 35% to 40%

    25 -> If the asset went up or down more than 25%.

    Please note that for every asset, only either 5 or 25 applies...

    For asset that is 20% of the portfolio, both 5/25 is the same number.

    For asset that is less than 20%, 25% rule applies

    For asset greater than 20%, 5% rule will hit first.

Dreamer
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