Date: Mon, 13 Feb 2006 08:57:33 -0600
From: Bread 
Newsgroups: misc.invest.financial-plan
Subject: Re: The Hardest Thing To Do
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On 2006-02-13 09:00:44 -0500, "Andy" 
 said:

> W. Wells wrote:
>> I have found the hardest thing to do is to rebalance your portfolio to a
>> more conserative stand. I have retired and have been advised to rebalance my
>> portfolio to 60-40 stocks and bonds. It is very hard to change my stock
>> funds making 10-15% per year for a bond fund making 3-7% .
> 
> The whole point of having a conservative portfolio in retirement is so
> that you do not end up eating catfood if the stock market takes a dive.
>  If you have enough saved up so that you would survive financially even
> if the stock market takes a dive then there is no pressing need to
> rebalance.

Further, I read an article recently (I forget where) which referenced
some recent study which suggested that folks, while they ought to
reblance, ought to do so *less* rather than more frequently.  Most
folks suggest rebalancing annually or more frequently, say, quarterly.
But the article made a case for spreading it out a bit more, perhaps
every two or three years.  I wish I had a reference for it (perhaps it
was the "Getting Going" column in the WSJ?)


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