Index investors - How often do you review & rebalance?

[Bill M]

I re-balance my wife's super portfolio every 6 Months. She is drawing a pension from it and topping up the cash part of it is a good idea as we are drawing on it Month by Month. I can't see the point of letting the winners keep winning to the point where all the cash gets drawn down and there is nothing in reserve should a 1987 or 2009 crash occur. This way (should a crash occur) we have enough cash in the account to keep the pension going for 4 years. This strategy seems to be working well for us and we will stick to it.

 

[Value Collector]

I re-balance my wife's super portfolio every 6 Months. She is drawing a pension from it and topping up the cash part of it is a good idea as we are drawing on it Month by Month. I can't see the point of letting the winners keep winning to the point where all the cash gets drawn down and there is nothing in reserve should a 1987 or 2009 crash occur. This way (should a crash occur) we have enough cash in the account to keep the pension going for 4 years. This strategy seems to be working well for us and we will stick to it.

Totally agree Bill, the pension phase is a different game, I was talking from my perspective as a guy 30years away from pension phase.

The closer you get to retirement the more you will need to have your assets spread.

Saying that though, it's still important to have growth assets in the pension phase, those that go to 100% cash with suffer.

 

[noirua]

Historically, the Australia S&P/ASX 200 Stock Market Index reached an all time high of 7199.79 in February of 2020. Australia S&P/ASX 200 Stock Market Index - data, forecasts, historical chart - was last updated on November of 2020. The ASX 200 closed Friday at 5,927, down 17.6%. Historically, the New Zealand Stock Market (NZX 50) reached an all time high of 12545.33 in October of 2020. The NZX 50 closed Friday at 12,084, down 3.6% The UK FTSE100 index began on 3 January 1984 at the base level of 1000. The highest closing value of 7,877.45 was reached on 22 May 2018. The highest intra-day value of 7,903.50 was reached on 22 May 2018. The FTSE closed Friday at 5,557, down 29.4%. The Dow Jones Industrial Average, also known as the Dow or DJIA, tracks 30 well-known and large companies that trade on the New York Stock Exchange (NYSE) and NASDAQ. The Dow all-time high was 29,551.42 points logged on Feb. 12, 2020. The DOW closed Friday at 26,501, down 10.3%. Historically, the Germany DAX 30 Stock Market Index reached an all time high of 13797.12 in February of 2020. The DAX closed at 11,556 on Friday, down 16.2%. The French CAC40 hit a high point of 6,225 on 1 August 2000. The CAC40 closed Friday at 4,592, down 26.2%. Historically, the China Shanghai Composite Stock Market Index reached an all time high of 6124.04 in October of 2007. The Shanghai Composite index closed Friday at 3,225, down 46.5%. 5166 was the 10 year high on 8 June 2015, down 37.5% at Friday's closing point. The Nikkei 225, or the Nikkei Stock Average more commonly called the Nikkei or the Nikkei. The average hit its all-time high on 29 December 1989, during the peak of the Japanese asset price bubble, at 38,712. The closing index Friday was 22,977, down 40.6%. The 10 year high point was 24,145 on October 1 2018, index was down 4.8% at Friday's close.

 

[noirua]

Historically, the Australia S&P/ASX 200 Stock Market Index reached an all time high of 7199.79 in February of 2020. Australia S&P/ASX 200 Stock Market Index - data, forecasts, historical chart - was last updated on November of 2020. The ASX 200 closed Friday at 5,927, down 17.6%. Historically, the New Zealand Stock Market (NZX 50) reached an all time high of 12545.33 in October of 2020. The NZX 50 closed Friday at 12,084, down 3.6% The UK FTSE100 index began on 3 January 1984 at the base level of 1000. The highest closing value of 7,877.45 was reached on 22 May 2018. The highest intra-day value of 7,903.50 was reached on 22 May 2018. The FTSE closed Friday at 5,557, down 29.4%. The Dow Jones Industrial Average, also known as the Dow or DJIA, tracks 30 well-known and large companies that trade on the New York Stock Exchange (NYSE) and NASDAQ. The Dow all-time high was 29,551.42 points logged on Feb. 12, 2020. The DOW closed Friday at 26,501, down 10.3%. Historically, the Germany DAX 30 Stock Market Index reached an all time high of 13797.12 in February of 2020. The DAX closed at 11,556 on Friday, down 16.2%. The French CAC40 hit a high point of 6,225 on 1 August 2000. The CAC40 closed Friday at 4,592, down 26.2%. Historically, the China Shanghai Composite Stock Market Index reached an all time high of 6124.04 in October of 2007. The Shanghai Composite index closed Friday at 3,225, down 46.5%. 5166 was the 10 year high on 8 June 2015, down 37.5% at Friday's closing point. The Nikkei 225, or the Nikkei Stock Average more commonly called the Nikkei or the Nikkei. The average hit its all-time high on 29 December 1989, during the peak of the Japanese asset price bubble, at 38,712. The closing index Friday was 22,977, down 40.6%. The 10 year high point was 24,145 on October 1 2018, index was down 4.8% at Friday's close.

The currency movements have been quite extreme at times and it does matter a great deal as to which currency a person is, I suppose, sitting in. The Aussie has seen very big movements against the USD in the last 10 years. As high as 91c in 2011 to the USD and low at $1.72 in 2019 to the USD.

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