HBPP Basic Rules

[trendtech01]

Hi All,
I am in need of some basic advice regarding the rules for this system. On the rebalance date do you rebalance all ETFs back to 25% weighting even if they havent breached the 35/15 band? And if any of the positions breach this band before the rebalance date do you act to bring the weightings back to an even 25%?

thanks

[ns3]

I believe HB's advice was to only check your portfolio once a year unless you observe that something extraordinary is happening in the economy  and then to only re-balance when you hit the bands. I'm sure others here do it differently, but after the initial few years of looking more often and tinkering, I'm taking that advice myself. I re-balanced in February because I was overweight in stock and haven't looked since.

[Ad Orientem]

In general, when any of your four asset classes breaches the 15/35% rebalancing bands you want to hit the reset button. There is no hard rule about how frequently you should be checking your portfolio, but I would say that once a year is the minimum. Conversely you don't want to be looking every day. Personally I think taking a quarterly peek is fine.