QUOTE(MNet @ Aug 23 2015, 08:06 PM)
Asset Allocation Investing using US ETF, Basic approach to asset Allocation ETF
Asset Allocation Investing using US ETF, Basic approach to asset Allocation ETF
|
Aug 23 2015, 10:58 PM
Return to original view | Post
#1
|
Senior Member
4,526 posts Joined: Jan 2003 |
|
|
Aug 26 2015, 10:42 PM
Return to original view | Post
#2
|
Senior Member
4,526 posts Joined: Jan 2003 |
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 |
Change to: | 0.0197sec
0.55
7 queries
GZIP Disabled
Time is now: 28th March 2024 - 08:46 PM |