Page 1 of 1
How to rebalance cross different accounts (401k, Roth)?
Posted: Fri Sep 02, 2011 7:49 am
by neil
Since my company does not offer brokerage window in 401k, I am thinking about build separate assets in different accounts.
But the question is how to rebalance the whole portfolio?
For example, I put TLT in Roth and VTI/Cash in 401k, if TLT lose, I may not be eligible to contribute anymore.
Re: How to rebalance cross different accounts (401k, Roth)?
Posted: Fri Sep 02, 2011 10:33 am
by Storm
neil wrote:
Since my company does not offer brokerage window in 401k, I am thinking about build separate assets in different accounts.
But the question is how to rebalance the whole portfolio?
For example, I put TLT in Roth and VTI/Cash in 401k, if TLT lose, I may not be eligible to contribute anymore.
If you are still in the wealth accumulation phase, you can do what I do and buy the lagging assets to help prevent rebalancing as much as possible. This usually means keeping cash outside of Roth/401k, however (use iBonds, CDs, FDIC insured savings, etc). I give preference to bonds as much as possible in 401k/IRA and gold/stocks in the taxable accounts.
When you start to reach higher net worth you may not be able to prevent a rebalance, and in that case, you will eventually end up with a little bit of everything in all your accounts.