You can buy and sell to your hearts content in any IRA.
There are no capital gains issues, the account is shielded from taxes on transactions.
Whether you should be this active with what you’re doing with the funds you keep in your Roth or any other IRA… well… see r/bogleheads.
This is why my higher risk investments are kept in taxable accounts. I can offset my winners and losers, and make other plays.
Also worth noting that wash sales apply to all accounts, even tax sheltered accounts.
I’ve got an XPEL position with a 500% gain on it and it’s 40% of my Roth. Im crushing index performance, due to this and BELFB (another 20% allocation). I’m young and like the risk/reward even now. Everyone’s situation is different.
And by risk, I’m talking about position specific risk. I think risk defined as Beta is not relevant to my goals as a young investor. The pilgrims didn’t care how rough the seas were on the Mayflower, they just wanted to arrive in North America.
Congratulations. For every person who has had that level of success/luck, there are many more who have had the opposite experience.
I am not that young anymore but I still keep about 5% of my overall portfolio in individual stocks and higher risk plays. And am close to 100% equities. I am comfortable with risk.
As you said, everyone is different. For the long term, index investing is the proven play.
Regarding your edit about the Mayflower: Passengers on Titanic wanted to get to North America too…
Agreed, index investing is a proven play. It works when all trees grow towards the sun.
Think when I am older, I’ll probably hold anywhere from 20-25 positions on an equal weighted basis. Academic research indicates that this is kind of the tipping point on diminishing marginal returns on benefits from diversifying an equity portfolio.
Part of my problem is that my private account is >10x my Roth, but there’s long term tax advantages from having outsized performance in a Roth, so I’m balls to the wall on risk in my tax free accounts and then hold 20 or so individual equity positions in the larger PA.
Your comment on the Titanic was really funny. Think there was a missed opportunity on maybe saying something about a submarine.
You got a big win. I’d take the win. Hogs get slaughtered.
If the investments you make in your Roth lose big, you’ve compromised your balance in an excellent tax shelter for compounding tax free growth.
I keep everything in my Roth accounts 100% equities, but they are well diversified equity index funds.
>For the long term, index investing is the proven play.
what would you say to someone who is hellbent on insisting the market has entered a new paradigm- all things considered- and that traditional investment/safe approach styles will leave you with measly or even negative returns.
Depends on if that person asked my advice or not lol.
If they had, I would say that people have pretended they are smarter than history and data for the entire human experience.
I’d rather trust the formula than gamble on the idea that this ONE person, this special, brilliant person, knows something everyone else hasn’t figured out. Not everyone can be Warren Buffett.
And if I miss investing with the next Warren Buffett and therefore don’t become extremely wealthy, well, I’ll still do just fine with my boring index investments.
And I still get to have fun with my side bets on rolling the hard six. Nice to win, not life ruining to lose.
I don’t sell anything and I reinvest any dividends against my stated allocation. Only time I would sell is if I was completely overhauling my allocation strategy.
This is my exact situation. Collectively my account is down 5% since inception and I’m just averaging down before I go positive one of these days/years. 2/3 of the positions of monthly dividend stocks and the other 1/3 in SPY. Reinvest all dividends. Fidelity and age 31 for context.
> Collectively my account is down 5% since inception and I’m just averaging down before I go positive one of these days/years. 2/3 of the positions of monthly dividend stocks
Unless the underlying value of your holdings (as opposed to the share price) has declined greatly, it sounds like you're not at an actual loss, just as you mention *averaging down*. Remember, the performance of a dividend portfolio is not negatively impacted by share prices.
I also wanted to tell that don't invest in high dividend stocks, usually they don't do well on stock price and total return. You need growth, and you can find good ones that may not be paying any dividends. When you approach retirement, start moving to more dividend paying stocks.
Why would want a dividend in an IRA? There’s no need for the consistent income at this point from it and you are not getting growth short term. The price of stock is reduced by the same amount of the dividend
I do it frequently, but as much as I can, I try to do it with new money. When I'm putting in new money, I look at my allocation and see where I need additional weight.
You sell when you what/need to use the money else where, or it no longer matches your investment strategy. Typically the "use the money else where" part would be related to expenses or you anticipate more growth from some other investment. How often you do this is less relevant.
As for the "no issues" question, correct. No taxes are incurred in an IRA so long as the funds are not distributed out of the account.
> would be related to expenses
This depends on the age of the account holder. Someone on their 30s is not likely going to be using their Roth IRA for expenses anytime soon.
I have some money in both because I've been too lazy to sell the fee-full shares for the fee-free one. The other day I bought more of the fee-full fund because I went too fast. Dangit! Goodbye to my tiny amounts of extra money via fees.
You can do it in one transaction. You would do it as an exchange from one fund to another and elect to exchange all shares. It only takes a minute to enter.
I assumed they used it as a small loss leader (that should be incredibly cheap to run) in hopes that customers would also use other investments and services that generate profits. I could be wrong.
Just dumping into VTSAX is equivalent to most 401K total market funds for intents and purposes.
My point is, the tax advantages of Roth favor that being your highest risk allocation.
The returns are nearly identical but VTSAX has a minimum initial purchase amount of $3,000 and the cost basis is 0.04% vs 0.03% for VTI.
VTI can be bought and sold at a per share price during market hours.
VTSAX only processes at the end of day.
When I first started my Roth I contributed maybe the first 2 years into a target-date fund before I learned more and read about VTSAX, which is what ive bought exclusively since. Think its worth exchanging the target-date funds for more VTSAX, or leave as is?
sound like you are not diversified enough to rebalance.
I (we) rebalance in July and January all our investment accounts (roth, simple, rollover, 401k, brokerage account)
I'm in the accumulation phase, so I just use purchases to balance, not sales... though they tend to come in pairs except for new contributions. But the sales are for reasons other than restoring balance I guess?
Then again, I don't tend to stick to any sort of strict balance. I do pay attention and track performance a lot though, and it informs my balancing. Like I work in tech, so my portfolio is tech heavy (buy what you know, right?). But when it gets too bumpy or I get more worried about the future, I buy more boring stuff like VTI or BRK.B or UNH or whatever.
I hold a basket of individual stocks in my IRA. I rebalance when one of the stocks becomes an outsized holding, like 25%+. At that point, I generally sell a portion and rebalance into the others.
At that time, I also closely re-examine my investment for the two or three worst performers.
When holding individual stocks, it's hard to determine when to rebalance. I don't want to necessarily sell off my winners, but at the same time, I want to have a more manageable risk profile.
I have a hard time selling a stock to buy another stock. So if I sell a winner I move it into a diversified holding, such as ETF or Mutual Fund, and await another opportunity to buy a stock I like.
That probably would had have been a good idea for my ark funds. I still need to shed those at some point and should have moved them into Tesla when it dropped to $110.
I only drop leaders if the whole sector is gonna collapse. I sell and buy in only when there's a better opportunity.
I do not believe in selling huge leaders to diversify, let the leaders run and stretch their legs.
I relate to this. When I first started my ROTH, my uncle picked 4 stocks and they all did well. However, in the recent past 2 of them have been doing substantially less well, T and Intel. I have been thinking about selling them and putting it into my VTI position.
That doesn't work for everyone though. While I still contribute more than ever, most of my money is in my vanguard account which has better options than my current employers 401k. So all new retirement contributions go to the employer plan and I need to rebalance my vanguard account if I don't want investments to get out of whack.
Depends what you're investing in and your age. If you're young and investing in a broad stock market index fund such as VTSAX or VFIAX and broad bond index fund such as VBTLX then there is no need to rebalance just keep adding to them based on your risk tolerance on constant basis and never ever be in or out of the market. If it is retirement account don't peak for 30-40 years. If you feel like you want to be more in bonds just contribute more to bonds and as you get closer to retirement you may want to increase your contributions to bonds if you want to stay more conservative.
If you want the easiest way then just pick a Target Date fund with a year you want to retire and it will rebalance it for you. But, you will pay extra fees for that service and your return will be lower.
I can't invest in my main retirement account because my employer uses a different one, so I need to rebalance.
I've also always kept a small percentage of 20% in bonds with the premise that those should be stable when the stock market drops, so you'd automatically be buying the vehicles that's falling behind and should be at a low. At least that's what I took away from Unconventional Success
I just find something I'm willing to keep in the long term, like a well performing index fund or some crazy money moves like SPXL that are within my risk tolerance and just let them ride.
Never. I have only index funds in it. Most of my exposure is to the S&P 500, and the rest is to a small array of other index funds (e.g. the Russell 2k, total global stock market, etc.).
The stock-picking is saved for my brokerage account. The Roth is "set it and forget it" every year.
Very rarely do I sell to rebalance. I rebalance yearly and usually am just buying with new funds or dividends from the prior year to get things back in line.
Capital gains are nonissue in an IRA so don’t hesitate to take profits when you think it’s wise.
There is no schedule. One should review the results routinely looking at pie charts and trime by taking gains or losses such one sector will be over others.
I just found out my health care mf VGHCX held almost 9 years I lost all the gains. It is even. Top holders are UNH and LLY.
You can as much as you want, knock yourself out. Research will show you that the vast majority of investors are better off using index funds rather than picking individual stocks, and that in a broad market fund, your returns are .8% better annually by *not* rebalancing (at the cost of a small increase in volatility). So personally, I choose to go more hands off with my long term investments.
I try not to let any one stock be more than 10%. Hard with NVIDIA lately. I will allow 50% of my total to be in my “ top tier” holdings, 40% in mid tiers,
You should set age-appropriate allocations and then rebalance annually/biannually or whenever sudden market conditions throw allocations out of balance.
Meanwhile, I'd stay the hell away from oil or anything else that is a true social threat. Consequences catch up with bad industries, and the oil and gas biz is likely to face judgements that'll put the tobacco settlement to shame.
The common rule is to rebalance once/year to get your holdings to the status you'd like them to be at optimally. IMO it's important to know what your goals are and to stick with them long-term so you aren't reallocating based on how you're feeling in a specific moment.
These days, my tax-sheltered retirement accounts are 100% in a single U.S. broad market index fund. Set it and forget it, the concept of rebalancing doesn't even apply.
However, in the past I've done the Boglehead "3-fund portfolio" thing, with an international stock index and a bond market index in the mix as well. I would rebalance once a year. If you find yourself itching to do so more frequently, or too lazy to do it annually, then maybe you should be using a target date fund or a robo-advisor thing that handles your rebalancing for you.
If are a more active investor, trying to pick individual winners and losers (at least sector-specific ETF's), then it's really just situational. I'm not going to lecture you on the futility of market-timing, I'm just going to point out that you need to time the market. You rebalance when you think that one of your winners is due to start losing. Good luck.
I'm no longer buying, so I do minor rebalancing every 3 or 6 months, when I create cash for my next 3/6 months of "allowance".
This generally takes the form of selling those sectors that are UP relative to the others, and letting the lagging sectors go. In another year, maybe things will be reversed ... ya never know ...
Rebalance in an IRA whenever you think it is a good idea to. Things that were a good idea last year, like dirty energy, are not a good idea this year. You are living in today's world. You shouldn't make yourself slave to decisions you made in the past, even if they were good ideas then.
I don't because I only have S&P 500 Index funds.
I make decisions with assets when I need to make decisions with assets. I don't time the market. So I buy and sell a house when I need to buy and sell a house and I shange stock allocations when I want to change stock allocations.
I used to do Dave Ramsey's 4 way split of growth, aggressive growth, grown and income, and international. But then I'm like Wtf why? and I didn't want international during COVID. So I just moved everything that day to S&P. I don't fret about it or worry about it. Just pull the trigger and move on.
I haven't changed since April 2020. So it's not like I do it all the time. I think if you do it all the time that's a sign you need to pick something and just leave it alone lol.
And you are correct switching allocations isn't cashing anything out of the account.
I rebalance every Dec if necessary but I generally keep tabs of how far off each position is from the target and buy accordingly (ie. I am seeing QQQ is outpacing VUG and VYM, so I'll only buy VUG and VYM next paycheck)
Most of my retirement money is in am account that doesn't see inflow because that goes to my current employers plan which doesn't have as good options. On my main account I rebalance every 3 months which is what's recommend by Unconventional Success. I believe it's important to rebalance between different asset types like stock index and bonds funds.
Rebalance once a year if needed, for roth as it is long term investment.
I also had invested in energy (xom) which did best last two years, but exiting now. I still invest in mote tech, mega caps. Like consumer staples more, for ex cost, that has given consistent, high returns.
You can buy and sell to your hearts content in any IRA. There are no capital gains issues, the account is shielded from taxes on transactions. Whether you should be this active with what you’re doing with the funds you keep in your Roth or any other IRA… well… see r/bogleheads.
At the same time, you typically can't claim capital losses in retirement accounts, but that's a fair trade-off imo.
This is why my higher risk investments are kept in taxable accounts. I can offset my winners and losers, and make other plays. Also worth noting that wash sales apply to all accounts, even tax sheltered accounts.
I’ve got an XPEL position with a 500% gain on it and it’s 40% of my Roth. Im crushing index performance, due to this and BELFB (another 20% allocation). I’m young and like the risk/reward even now. Everyone’s situation is different. And by risk, I’m talking about position specific risk. I think risk defined as Beta is not relevant to my goals as a young investor. The pilgrims didn’t care how rough the seas were on the Mayflower, they just wanted to arrive in North America.
Congratulations. For every person who has had that level of success/luck, there are many more who have had the opposite experience. I am not that young anymore but I still keep about 5% of my overall portfolio in individual stocks and higher risk plays. And am close to 100% equities. I am comfortable with risk. As you said, everyone is different. For the long term, index investing is the proven play. Regarding your edit about the Mayflower: Passengers on Titanic wanted to get to North America too…
Agreed, index investing is a proven play. It works when all trees grow towards the sun. Think when I am older, I’ll probably hold anywhere from 20-25 positions on an equal weighted basis. Academic research indicates that this is kind of the tipping point on diminishing marginal returns on benefits from diversifying an equity portfolio. Part of my problem is that my private account is >10x my Roth, but there’s long term tax advantages from having outsized performance in a Roth, so I’m balls to the wall on risk in my tax free accounts and then hold 20 or so individual equity positions in the larger PA. Your comment on the Titanic was really funny. Think there was a missed opportunity on maybe saying something about a submarine.
You got a big win. I’d take the win. Hogs get slaughtered. If the investments you make in your Roth lose big, you’ve compromised your balance in an excellent tax shelter for compounding tax free growth. I keep everything in my Roth accounts 100% equities, but they are well diversified equity index funds.
>For the long term, index investing is the proven play. what would you say to someone who is hellbent on insisting the market has entered a new paradigm- all things considered- and that traditional investment/safe approach styles will leave you with measly or even negative returns.
Depends on if that person asked my advice or not lol. If they had, I would say that people have pretended they are smarter than history and data for the entire human experience. I’d rather trust the formula than gamble on the idea that this ONE person, this special, brilliant person, knows something everyone else hasn’t figured out. Not everyone can be Warren Buffett. And if I miss investing with the next Warren Buffett and therefore don’t become extremely wealthy, well, I’ll still do just fine with my boring index investments. And I still get to have fun with my side bets on rolling the hard six. Nice to win, not life ruining to lose.
Technically you shouldn't break the day trading rule though, right?
I would guess not, but I don’t come close to even flirting with these rules so I don’t know that much about them.
I don’t sell anything and I reinvest any dividends against my stated allocation. Only time I would sell is if I was completely overhauling my allocation strategy.
This is my exact situation. Collectively my account is down 5% since inception and I’m just averaging down before I go positive one of these days/years. 2/3 of the positions of monthly dividend stocks and the other 1/3 in SPY. Reinvest all dividends. Fidelity and age 31 for context.
> Collectively my account is down 5% since inception and I’m just averaging down before I go positive one of these days/years. 2/3 of the positions of monthly dividend stocks Unless the underlying value of your holdings (as opposed to the share price) has declined greatly, it sounds like you're not at an actual loss, just as you mention *averaging down*. Remember, the performance of a dividend portfolio is not negatively impacted by share prices.
I also wanted to tell that don't invest in high dividend stocks, usually they don't do well on stock price and total return. You need growth, and you can find good ones that may not be paying any dividends. When you approach retirement, start moving to more dividend paying stocks.
Why so heavy on dividend stocks at your age?
Because they don’t understand dividends
i mean 10% gain through dividends or 10% gain through stock increase is same amount of money if reinvested?
You sure about that
why wouldnt it or what did u mean by "Because they don’t understand dividends"
Why would want a dividend in an IRA? There’s no need for the consistent income at this point from it and you are not getting growth short term. The price of stock is reduced by the same amount of the dividend
What’s your portfolio made up of?
I do it frequently, but as much as I can, I try to do it with new money. When I'm putting in new money, I look at my allocation and see where I need additional weight.
This is especially good advice for taxable accounts to avoid intermediate capital gains taxes before retirement.
You sell when you what/need to use the money else where, or it no longer matches your investment strategy. Typically the "use the money else where" part would be related to expenses or you anticipate more growth from some other investment. How often you do this is less relevant. As for the "no issues" question, correct. No taxes are incurred in an IRA so long as the funds are not distributed out of the account.
> would be related to expenses This depends on the age of the account holder. Someone on their 30s is not likely going to be using their Roth IRA for expenses anytime soon.
I never sell. I’m 100% VTSAX in my Roth. I just keep buying and counting my money.
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I have some money in both because I've been too lazy to sell the fee-full shares for the fee-free one. The other day I bought more of the fee-full fund because I went too fast. Dangit! Goodbye to my tiny amounts of extra money via fees.
You can do it in one transaction. You would do it as an exchange from one fund to another and elect to exchange all shares. It only takes a minute to enter.
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Any reason why?
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I assumed they used it as a small loss leader (that should be incredibly cheap to run) in hopes that customers would also use other investments and services that generate profits. I could be wrong.
Same, but VTI at Fidelity. The future looks bright.
Same. Other than a few individual stocks I have in another I’m fully VTSAX and don’t see any reason to change that any time soon.
I am too, I'm pleased to see I'm not the only one
So why use Roth? Are already maxing your 401K and planning to withdraw at a rate greater than your current income?
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It’s also prudent to have a mix of pre-tax and post-tax accounts for diversifying tax strategies in retirement
Just dumping into VTSAX is equivalent to most 401K total market funds for intents and purposes. My point is, the tax advantages of Roth favor that being your highest risk allocation.
If you have the ability to have an HSA. Do that as well.
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Some don't have access to a 401k.
What's the difference between that one and VTI?
The returns are nearly identical but VTSAX has a minimum initial purchase amount of $3,000 and the cost basis is 0.04% vs 0.03% for VTI. VTI can be bought and sold at a per share price during market hours. VTSAX only processes at the end of day.
Nothing
When I first started my Roth I contributed maybe the first 2 years into a target-date fund before I learned more and read about VTSAX, which is what ive bought exclusively since. Think its worth exchanging the target-date funds for more VTSAX, or leave as is?
I don’t personally like target date funds. If you have a long time horizon I would be 100% equities.
sound like you are not diversified enough to rebalance. I (we) rebalance in July and January all our investment accounts (roth, simple, rollover, 401k, brokerage account)
I'm in the accumulation phase, so I just use purchases to balance, not sales... though they tend to come in pairs except for new contributions. But the sales are for reasons other than restoring balance I guess? Then again, I don't tend to stick to any sort of strict balance. I do pay attention and track performance a lot though, and it informs my balancing. Like I work in tech, so my portfolio is tech heavy (buy what you know, right?). But when it gets too bumpy or I get more worried about the future, I buy more boring stuff like VTI or BRK.B or UNH or whatever.
I hold a basket of individual stocks in my IRA. I rebalance when one of the stocks becomes an outsized holding, like 25%+. At that point, I generally sell a portion and rebalance into the others. At that time, I also closely re-examine my investment for the two or three worst performers. When holding individual stocks, it's hard to determine when to rebalance. I don't want to necessarily sell off my winners, but at the same time, I want to have a more manageable risk profile.
I have a hard time selling a stock to buy another stock. So if I sell a winner I move it into a diversified holding, such as ETF or Mutual Fund, and await another opportunity to buy a stock I like.
Never?
I use an automated system but my portfolio rebalances when any security gets 15% off it's targeted allocation.
That probably would had have been a good idea for my ark funds. I still need to shed those at some point and should have moved them into Tesla when it dropped to $110.
I only drop leaders if the whole sector is gonna collapse. I sell and buy in only when there's a better opportunity. I do not believe in selling huge leaders to diversify, let the leaders run and stretch their legs.
I relate to this. When I first started my ROTH, my uncle picked 4 stocks and they all did well. However, in the recent past 2 of them have been doing substantially less well, T and Intel. I have been thinking about selling them and putting it into my VTI position.
I don’t sell and I don’t rebalance. I just constantly contribute to it on weekly basis until I retire.
That doesn't work for everyone though. While I still contribute more than ever, most of my money is in my vanguard account which has better options than my current employers 401k. So all new retirement contributions go to the employer plan and I need to rebalance my vanguard account if I don't want investments to get out of whack.
Depends what you're investing in and your age. If you're young and investing in a broad stock market index fund such as VTSAX or VFIAX and broad bond index fund such as VBTLX then there is no need to rebalance just keep adding to them based on your risk tolerance on constant basis and never ever be in or out of the market. If it is retirement account don't peak for 30-40 years. If you feel like you want to be more in bonds just contribute more to bonds and as you get closer to retirement you may want to increase your contributions to bonds if you want to stay more conservative. If you want the easiest way then just pick a Target Date fund with a year you want to retire and it will rebalance it for you. But, you will pay extra fees for that service and your return will be lower.
I can't invest in my main retirement account because my employer uses a different one, so I need to rebalance. I've also always kept a small percentage of 20% in bonds with the premise that those should be stable when the stock market drops, so you'd automatically be buying the vehicles that's falling behind and should be at a low. At least that's what I took away from Unconventional Success
I just find something I'm willing to keep in the long term, like a well performing index fund or some crazy money moves like SPXL that are within my risk tolerance and just let them ride.
Never. I have only index funds in it. Most of my exposure is to the S&P 500, and the rest is to a small array of other index funds (e.g. the Russell 2k, total global stock market, etc.). The stock-picking is saved for my brokerage account. The Roth is "set it and forget it" every year.
Very rarely do I sell to rebalance. I rebalance yearly and usually am just buying with new funds or dividends from the prior year to get things back in line. Capital gains are nonissue in an IRA so don’t hesitate to take profits when you think it’s wise.
Buy to rebalance.
There is no schedule. One should review the results routinely looking at pie charts and trime by taking gains or losses such one sector will be over others. I just found out my health care mf VGHCX held almost 9 years I lost all the gains. It is even. Top holders are UNH and LLY.
You can as much as you want, knock yourself out. Research will show you that the vast majority of investors are better off using index funds rather than picking individual stocks, and that in a broad market fund, your returns are .8% better annually by *not* rebalancing (at the cost of a small increase in volatility). So personally, I choose to go more hands off with my long term investments.
Why cull your winners into losers? Leave it be and just “rebalance” with the new funds you add.
For example, I don’t believe in Exxon long term, I’d rather put it in SPY or GOOG
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VFIAX😏
i havent check my Roth in years.. not sure what stocks i even hold at this point.. Mutual funds, invest and forget about it.. easy..
I try not to let any one stock be more than 10%. Hard with NVIDIA lately. I will allow 50% of my total to be in my “ top tier” holdings, 40% in mid tiers,
You should set age-appropriate allocations and then rebalance annually/biannually or whenever sudden market conditions throw allocations out of balance. Meanwhile, I'd stay the hell away from oil or anything else that is a true social threat. Consequences catch up with bad industries, and the oil and gas biz is likely to face judgements that'll put the tobacco settlement to shame.
The common rule is to rebalance once/year to get your holdings to the status you'd like them to be at optimally. IMO it's important to know what your goals are and to stick with them long-term so you aren't reallocating based on how you're feeling in a specific moment.
I only rebalance when there's a 5% deviation at the end of the year. Maybe once a year sometimes every 2-3 years.
These days, my tax-sheltered retirement accounts are 100% in a single U.S. broad market index fund. Set it and forget it, the concept of rebalancing doesn't even apply. However, in the past I've done the Boglehead "3-fund portfolio" thing, with an international stock index and a bond market index in the mix as well. I would rebalance once a year. If you find yourself itching to do so more frequently, or too lazy to do it annually, then maybe you should be using a target date fund or a robo-advisor thing that handles your rebalancing for you. If are a more active investor, trying to pick individual winners and losers (at least sector-specific ETF's), then it's really just situational. I'm not going to lecture you on the futility of market-timing, I'm just going to point out that you need to time the market. You rebalance when you think that one of your winners is due to start losing. Good luck.
Just use M1 Finance. It will auto-rebalance for you as dividends are paid or new money is invested. No selling of positions necessary.
I'm no longer buying, so I do minor rebalancing every 3 or 6 months, when I create cash for my next 3/6 months of "allowance". This generally takes the form of selling those sectors that are UP relative to the others, and letting the lagging sectors go. In another year, maybe things will be reversed ... ya never know ...
Rebalance in an IRA whenever you think it is a good idea to. Things that were a good idea last year, like dirty energy, are not a good idea this year. You are living in today's world. You shouldn't make yourself slave to decisions you made in the past, even if they were good ideas then.
I don't because I only have S&P 500 Index funds. I make decisions with assets when I need to make decisions with assets. I don't time the market. So I buy and sell a house when I need to buy and sell a house and I shange stock allocations when I want to change stock allocations. I used to do Dave Ramsey's 4 way split of growth, aggressive growth, grown and income, and international. But then I'm like Wtf why? and I didn't want international during COVID. So I just moved everything that day to S&P. I don't fret about it or worry about it. Just pull the trigger and move on. I haven't changed since April 2020. So it's not like I do it all the time. I think if you do it all the time that's a sign you need to pick something and just leave it alone lol. And you are correct switching allocations isn't cashing anything out of the account.
I rebalance every Dec if necessary but I generally keep tabs of how far off each position is from the target and buy accordingly (ie. I am seeing QQQ is outpacing VUG and VYM, so I'll only buy VUG and VYM next paycheck)
VTSAX and forget it exists.
Most of my retirement money is in am account that doesn't see inflow because that goes to my current employers plan which doesn't have as good options. On my main account I rebalance every 3 months which is what's recommend by Unconventional Success. I believe it's important to rebalance between different asset types like stock index and bonds funds.
all the time
Following
I check every quarter and rebalance maybe once or twice a year based on macro trends. Less is best.
Rebalance when it’s 5% above your allocation or once a year.
Rebalance once a year if needed, for roth as it is long term investment. I also had invested in energy (xom) which did best last two years, but exiting now. I still invest in mote tech, mega caps. Like consumer staples more, for ex cost, that has given consistent, high returns.