Gyroscopic Investing

Still haven't found in the old discussions a clear suggestion
on how you guys are rebalancing for tax efficiency in a taxable account.
Quarterly,six months,yearly?When assets classes exceed certain percentages
of the account?
Big thank you..

annieB wrote: Still haven't found in the old discussions a clear suggestion
on how you guys are rebalancing for tax efficiency in a taxable account.
Quarterly,six months,yearly?When assets classes exceed certain percentages
of the account?
Big thank you..

If all of my assets were in taxable accounts, I would rebalance at 15-35% bands. 

I'm sure there are probably some strategies you could use to minimize your taxes that may complicate this a bit, but in general that's what I would do.

Thanks Adam.
So if one asset class falls below 15% or rises above 35%,
I would rebalance back to 4x25%.
That is rather elegent and simple.

annieB wrote: Thanks Adam.
So if one asset class falls below 15% or rises above 35%,
I would rebalance back to 4x25%.

Yep.

That is rather elegent and simple.

That's the idea.

One additional thought:

Sometimes I wonder if it might be better not to rebalance at all, under certain circumstances.  For instance, if I had a large sum of money invested in a taxable account and I didn't plan to add or withdraw any for many years, I think I might not rebalance at all. 

The rebalancing premium to date is something like 0.5%, and sometimes I think that it might not be worth the tax headache, etc...under certain circumstances.