is rebalancing a portfolio quartely too often?

Question

how often is best to rebalance a portfolio and is any particular quarter the better time?

Answer 1

way too often. It will generate too much in brokerage commissions. Once a year is sufficient. Maybe even once every two years.

Answer 2

A lot of factors go into answering this question. Are there costs you bear when you rebalance? If so, are those costs worth it?

Or is this a time issue? Many of the reponses given have answered you based on time.

But the real answer is whether the time you spend is worth it to you? What is the utility value to you? If you are able to cost justify it, then yes, a quarterly, monthly or even daily rebalancing is worth it. You just need to quantify it for your situation.

Generally speaking, and annual review will be fine and is most likely only going to impact your end result by a small amount...which won't likely make the time you are spending worth it. But each their own.

Answer 3

I think it is time for you to go into a mutual fund and let the pros's manage your money, You must be killing yourself with commissions. If you buy good quality blue chips you can just hold them for a long time and you wont have to re balance so much.You could hold Exxon for 20 yrs and wont have to worry about it. But you need to go to Vanguard.com and look into their funds I love their Equity Income Fund It is good for 11 to 12% a year over the long term.

Answer 4

I think that would fall under the category of micro managing. Once a year will be plenty. Did your stock broker recommend quarterly? You have both commissions and taxes to consider.

Answer 5

Thats probably too often. Every year or two would probably be more efficient. Or when your life circumstances change, marriage, divorce, a child, increase or decrease in income, new job, promotion or raise etc.

Answer 6

It most certainly is NOT too often.. It is a great tiime to do it. or even every six months but do not wait like most people.. every two years.