Wednesday, May 9, 2012

Rebalancing tips

So, I'm in the middle of a rebalance and thought of a couple things to share. I like to rebalance twice a year. Once in May and once in October. I find that there is calendar volatility related to summer. Maybe folks take there hands off the proverbial tiller for a summer vacation. I used to use my birthday but since it came in the summer I always seemed late to party when it came to the "protection" that rebalancing provides.

My online brokerage that services my Roth/IRAs has different monthly pricing structures. Ranging from [No monthly fee for $4 purchases & $9.95 sales. Or $12 monthly fee for 12-$1 purchases & $7.95 sales] I always chose the "Free" account except for the months that I rebalance. That saves me $80 a year!

I only purchase 1 investment per month when it comes to my monthly autopilot ROTH IRA savings. This keeps my normal monthly fee down to $4. I purchase my way towards balance by changing what that one investment is depending on my portfolios needs.

Remember to Rebalance across all of your accounts!

2 comments:

  1. Ooh Ooh! I have a tip! If you bank at Wells Fargo you can qualify for a PMA account if you maintain a balance of $25 across all of your accounts. And you can link a spouse. Then for IRAs, Roth IRAs and brokerage accounts you get 100 free trades per year per account. I keep expecting them to change it, but so far so good.

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    1. Good one Sarah. A good reminder to be creative in avoiding fees. Just out of curiosity what is a PMA account?

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