facebookHow can we rebalance our own portfolios? I know it is common for robo-advisors to rebalance on their own, but as individual investors, what are the steps to take to rebalance? - Seedly
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Anonymous

Posted on 05 Nov 2020

How can we rebalance our own portfolios? I know it is common for robo-advisors to rebalance on their own, but as individual investors, what are the steps to take to rebalance?

New to investing, hoping to learn from the community here! Thank you!

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Discussion (1)

Eg. initially u put $1k equity/ $1k bond.

2nd yr: ur portfolio profit/loss; $800E / $1100B

U need to sell $150B and put into E make it $950E/$950B

Within the Equity/bond u got number of individual stocks/bonds. Base on ur initial % weightage, redistribute the $950 within the equity/bond

50-50 is just a guideline, need not strictly follow. is ok to be 53-47. But when rebalance you need to consider is it worth it? All this buying / selling will incur transaction fee

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Question Poster

09 Nov 2020

This is so helpful šŸ‘ Thank You YJ!

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