How often to rebalance?

zolablue25

If you have a nice balanced portfolio (by nice, I obviously mean "suits your own need") and to keep the nice balance you, at some point, will need to rebalance as some parts rise and others fall (or rise at different rates). I was wondering what the consensus is for the frequency of assesing your portfolio balance and the triggers for rebalancing?

Thaks for any input into the discussion

dunstonh

Yearly is fine for most people.

dunroving

Recent thread on this topic here:

https://forums.moneysavingexpert.com/discussion/5191133

I can't imagine having the time to re-balance more than once a year.

zolablue25

Thanks chaps. That seems fairly clear - 100% for annual review.

steelbru

A good couple of Monevator articles on re-balancing. They suggest 2 ways, either :
a) calendar ( ie 6 months, yearly, etc ) http://monevator.com/the-simplest-way-to-rebalance-your-portfolio/
b) threshold ( ie when a certain share/fund goes outside a pre-defined %age range ) http://monevator.com/threshold-rebalancing/

ChopperST

http://www.marketwatch.com/story/the-right-way-to-rebalance-your-portfolio-2014-02-18

I re balance every quarter, ideally with new contributions.

mark13

Quarterly for me as well.

JohnRo

Three rebalancing trades quarterly with new money, which sometimes works out closer to once a month depending on the ex dividend dates, schedule and allocation priority.

I've cobbled a spread sheet that does all the timing and thinking for me.

Glen_Clark

If you are confident your asset allocations are exactly right for you, I suppose you would want to stick to them precisely. But for those of us who feel asset allocations are only a guess, maintaining them precisely is less important.

edinburgher

Once a year here at the end of March.