It sounds like we are in agreement.To me, risk isn't a matter of stocks/bonds ratio. Risk is not having a big slug of TIPS in retirement.Not rebalancing obviously stands a chance of higher returns. What happens when we don't rebalance?If some funds are doing better why do you want to rebalance?
What are some of the pros and cons to this or not doing it?
We increase our risk.
The question is, can you handle the risk?
As we age, we want to reduce the risk of loss.
When entering retirement.
The first rule is, don't lose money.
The second rule is don't forget rule number one!
I have a risk portfolio (stocks) and a separate TIPS portfolio. The current percentages are 62% stocks and 38% TIPS, but I don't care about the percentages so much as the $ amount of TIPS.
Statistics: Posted by retireIn2020 — Wed Jan 24, 2024 11:56 pm — Replies 41 — Views 3719
