Rebalancing 2014

[craigr]

Well I said I wasn't going to post much on the Permanent Portfolio on my blog, but I lied. It will just be infrequent...

In this case, I would just like to remind everyone swimming in their pool of profits from bonds and stocks in 2014 that doing a rebalancing checkup is a good idea:

https://web.archive.org/web/20160324133 ... time-2014/

I had to rebalance this year just as a personal take. I treat it like a cold business decision and do not turn it into a market timing matter.

[madbean]

In this case, I would just like to remind everyone swimming in their pool of profits from bonds and stocks in 2014 that doing a rebalancing checkup is a good idea:

What would be the point of selling off profits from bonds and stocks at this time in December, assuming it's taxable? Wouldn't you be locking in capital gains for the taxman?

Personally, I'm in the habit of checking in late January/early February for this reason unless I can see some losses that might benefit me before the end of the year.

[buddtholomew]

In this case, I would just like to remind everyone swimming in their pool of profits from bonds and stocks in 2014 that doing a rebalancing checkup is a good idea:

What would be the point of selling off profits from bonds and stocks at this time in December, assuming it's taxable? Wouldn't you be locking in capital gains for the taxman?

Personally, I'm in the habit of checking in late January/early February for this reason unless I can see some losses that might benefit me before the end of the year.

Its clear in the blog post that one should consider tax implications when rebalancing. As a predominantly taxable investor (PP) I contribute to the lagging asset.

[barrett]

madbean,

Budd beat me to it but, yeah, check out the link that Craig provided. Much of the blog post is about tax efficiency.

[craigr]

In this case, I would just like to remind everyone swimming in their pool of profits from bonds and stocks in 2014 that doing a rebalancing checkup is a good idea:

What would be the point of selling off profits from bonds and stocks at this time in December, assuming it's taxable? Wouldn't you be locking in capital gains for the taxman?

Personally, I'm in the habit of checking in late January/early February for this reason unless I can see some losses that might benefit me before the end of the year.

Yes as others have stated each person is different and you need to look at your own situation. I just provide a general commentary for people in case they are at or above a rebalancing band and are thinking of riding that pony a little longer. Sometimes you need to suck up a tax hit to maintain risk control across the total portfolio. But each person needs to make that call. I don't offer specific recommendations to anyone.