We’re an investing service that also helps you keep your dough straight. We’ll manage your retirement investments while teaching you all about your money.
#retirement #retirementplanning #dohstr8
—Ready to subscribe—
For more information visit:
— Instagram @jazzWealth
— Twitter @jazzWealth
Business Affairs 📧Support@JazzWealth.com…(read more)
LEARN MORE ABOUT: 401k Plans
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
As an investor, you probably have a 401k account where you save and invest money for your retirement. One of the primary responsibilities of any investor is to rebalance their portfolio periodically. But, the question arises- when is the right time to rebalance your 401k?
Rebalancing is the process of adjusting your portfolio to maintain the original allocation of assets. In simple words, it means buying and selling the assets in your portfolio to ensure that your investments are ideally weighted according to your risk tolerance and investment goals. Rebalancing helps investors to reduce risk and maximize returns.
The best time to rebalance your 401k is nearly every six months, or annually. There are some reasons why investors often follow a six-month or annual schedule for rebalancing their portfolios. It ensures that the investor’s portfolio maintains an appropriate mix of stocks, bonds, and other assets. It also helps to capture the gains from investments that may have had a successful run-up over the previous period. Additionally, it also ensures that investors stay disciplined and maintain their financial goals.
However, a six-month or annual schedule for rebalancing may not be fit for everyone. Here are some of the other factors to consider when evaluating the rebalancing frequency that may work best for you:
1. Changes in financial goals: Life is full of surprises, and your financial goals can change due to unexpected life events. It’s important to rebalance your portfolio when something significant happens in your life, like buying a house, getting a job promotion, or going through a divorce.
2. Market changes: The stock market is an unpredictable beast, and sudden volatility can significantly affect your portfolio. If the market experiences a major disruption, it’s important to rebalance your portfolio to minimize any potential losses.
3. Age and retirement timeline: Your age and the timeline for your retirement goals should also dictate the frequency of your rebalancing. Investors nearing retirement age should consider more frequent rebalancing as their investment portfolios become more conservative.
In conclusion, the best time to rebalance your 401k portfolio is every six months, or annually. It’s important to stay disciplined and maintain your investment goals, but your individual situation and changing market conditions may also warrant more frequent rebalancing. Finally, remember that rebalancing is one of the essential tools in an investor’s toolkit, and it should be used regularly to ensure a healthy, balanced portfolio.
You mention it briefly toward the end of the video, but specifically what type of returns do you get by not rebalancing.
Skip ahead to 1:34 for the content
Rebalancing doesn’t do what it used to, the markets & position is much bigger than when they thought about it
I like how M1 finance handled this. You pick the allocation and they split the deposits into the slots.
The Money Guy Show is one of the absolute best on YouTube!!
Wouldn't the odds of the best day to be getting in be at most 1 in 365? Even less depending on the market being closed on multiple days each week. 😉
OH IT brightened my day this video did. So much so I get to pick on Dustin this time and not feel bad about it. Cody Dustin Support team you have an email.
Nice haircut!
Most of my stash is in taxable accounts, so I use the distributions to portfolio balance. My smallish IRA is in Treasury Bills. Keeps the RMDs down. My Roth has some short term assets.
Look at the steady increase No matter what happens? It's because every 2 weeks all the 401k 403 ect money comes in and has to go Somewhere? So Stock and Bond Funds grow whether economy is good or bad? Investors are not really controlling purchases, just auto investing! When Boomers start taming out more? The Markets will go Down no matter what ! Unless young peep start investing enough to prop it up?
Great job Guys