Adding money to PP

[rhymenocerous]

Contribute to gold and LTTs, trying to make them both as even as possible relative to each other (ie they are the same % of your PP).  If, however, adding the full $5500 to gold would still make it lower as a % of your PP than LTTs, then just contribute the entire thing to gold.

[Reub]

I like to add evenly across the four categories. This eliminates the chance of picking the wrong asset and, I believe, has been shown to yield the greatest return over time.

[frugal]

Cash.

Cash cash cash.

Why Cash? Isn't it market timing?

When to add to 4 categories ? By the end of the year?

[koekebakker]

I'd just add it it to the lagging asset. That way you keep your transaction costs as low as possible by reducing the chance you have to rebalance.

[2thefuture]

        Am I wrong in thinking the 15/35% rebalancing bands is what gives the PP the ability to eliminate the danger of market timing? It doesn't make sense to change your bands percentages when adding new money. If, for example, stocks are 29%, bonds 22%, gold 21%, and cash 28% I would just add new money at the percentages to each of the assets.  If you did anything different the 15/35 would be reached at a different time.

[dualstow]

Maybe it depends on the situation. If my gold share were down to 20%, I'd be tempted to put new money into it rather than into cash, and rather than waiting for 15%.  But, with all my assets floating between, say, 23% and 27%, I'd put everything new into cash and wait for a band to be reached.

If all assets were depressed but fairly equal and I came into some new money, I'd probably buy all the assets.
Seems like common sense.

[frugal]

My actual Percent is:

St  27,52%
Lb  26,00%
Ch 26,50%
Gd 19,97%

any other opinion?

The new money represents 20% of the existing PP

[buddtholomew]

My actual Percent is:

St  27,52%
Lb  26,00%
Ch 26,50%
Gd 19,97%

any other opinion?

The new money represents 20% of the existing PP

If I was adding 20% to the PP, I would restore all assets to 4x25 given the minor drift you have in the current allocation (especially in a taxable account).

[frugal]

Maybe I prefer to do 4x25 again...

[buddtholomew]

Makes sense to me.