Asked on 31 Oct 2019
I have 2.7k in StashAway at about 14% risk level. I add in monthly $200 too...
I was thinking if my investment hits $4k (not inclusive of the returns), should I balance it out like taking out 1k from the current portfolio and invest it in a 36% risk level with $100 for DCA
In all, I would have a 14% and a 36% risk level portfolio at $2k starting and $100 DCA...
Would doing this create more risk or more fees?
14% risk level seems to suggest a moderate risk appetite and this is for the portfolio you are currently building. If you want to build a higher risk appetite portfolio at 36% risk level, why not start with the $100/month to it now (and keep the other $100/month to the current moderate risk appetite portfolio)? Just so that it can start building now. Rather than wait until it hits $4K before you do that balancing event.
It's not creating more risk or fees that you should worry about. It's the fact that you will have to wait for about 6 months before you can take this action. Who knows what can happen in the next 6 months. Unless you are taking a position that the equity markets might drop significantly during this period of time and you only want to increase your equities exposure by setting up the higher risk appetite portfolio then.
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