Rebalance after withdrawing cash in an emergency?

General Discussion on the Permanent Portfolio Strategy

Moderator: Global Moderator

Post Reply
User avatar
Pointedstick
Executive Member
Executive Member
Posts: 8883
Joined: Tue Apr 17, 2012 9:21 pm
Contact:

Rebalance after withdrawing cash in an emergency?

Post by Pointedstick »

Let's say you consider your cash slice to be usable as an ad-hoc emergency fund, and that you at some point need to use it, so you withdraw enough cash to hit the 15% rebalance band. Would you do a real rebalance, or try to make up the lost cash as quickly as possible so as to not have to rebalance?
Human behavior is economic behavior. The particulars may vary, but competition for limited resources remains a constant.
- CEO Nwabudike Morgan
User avatar
KevinW
Executive Member
Executive Member
Posts: 945
Joined: Sun May 02, 2010 11:01 pm

Re: Rebalance after withdrawing cash in an emergency?

Post by KevinW »

I guess if the portfolio were relatively small so that I could get back to 15% cash within a few months, I wouldn't rebalance. Otherwise I would.
Post Reply