Gyroscopic Investing

Hi All,

New PP'er. Getting early pension payout from old employer rolling into IRA @ Vanguard.  Started research and came upon the PP option.

Plans:

IAU, VTI, LT bonds and T-bills on secondary market.

Perhaps a little EDV.

Question and/or clarification:

1. rebalance yearly OR when bands reach 35/15.

2. dividends and coupons go to cash account and use to rebalance.

Am i correct?

hi rnmike! Welcome to the forum.

rnmike10 wrote: 1. rebalance yearly OR when bands reach 35/15.

It's best to only rebalance only when you hit the 15/35 bands to avoid rebalancing too frequently, which will cost you money in commissions and dampen the returns.

rnmike10 wrote: 2. dividends and coupons go to cash account and use to rebalance.

Whichever makes you sleep better. Personally, I reinvest dividends, although with actual bonds that's obviously not an option. That basically leaves VTI for you to decide what you want to to with its quarterly distributions.