Yearly balancing or 15/35?

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sophie
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Re: Yearly balancing or 15/35?

Post by sophie » Sun Jun 16, 2019 9:55 am

Good to hear from you frugal!!! Have you been lurking all this time?

I think there are others who can answer your question far better than I.

If your question translates as "can I get better returns by eliminating the cash component" then the answer is "yes, probably but not enough to really make a difference."

If you go to this handy website you can play around with numbers yourself:

https://portfoliocharts.com/portfolio/my-portfolio/

Comparing a 25x4 US PP to 33x3 US PP without cash, the elimination of cash juices the annual real returns from 4.5% to 5.6%. However, if you don't have cash in your portfolio that means you are holding it on the side and not counting it in your returns calculations. So do you want a smaller piece of a bigger pie, or a bigger piece of a smaller pie?
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frugal
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Re: Yearly balancing or 15/35?

Post by frugal » Sun Jun 16, 2019 12:35 pm

sophie wrote:
Sun Jun 16, 2019 9:55 am
Good to hear from you frugal!!! Have you been lurking all this time?

I think there are others who can answer your question far better than I.

If your question translates as "can I get better returns by eliminating the cash component" then the answer is "yes, probably but not enough to really make a difference."

If you go to this handy website you can play around with numbers yourself:

https://portfoliocharts.com/portfolio/my-portfolio/

Comparing a 25x4 US PP to 33x3 US PP without cash, the elimination of cash juices the annual real returns from 4.5% to 5.6%. However, if you don't have cash in your portfolio that means you are holding it on the side and not counting it in your returns calculations. So do you want a smaller piece of a bigger pie, or a bigger piece of a smaller pie?
Hello,

my understanding about PP is higher and I don't feel the need to read all about market or PP. But I visit the forum once a week.

Let's say that the PP is a lower value than other "assets" I have, as cash and others in different forms.

When have you made PP? Which year?

How do you keep learning about markets?

Regards and have a nice weekend!
:-*
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