Do you rerun or rebalance each year or periodically to re-balance real performance against beginning expected or projected performance?

Rachel Fox

January 28, 2011 15:41

Do you rerun or rebalance each year or periodically to re-balance real performance against beginning expected or projected performance?

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  Rachel Fox

  January 28, 2011 15:42

  Many advisors “harvest” gains when a particular segment has reached its targeted accumulation amount. For example, you may have a 20 years segment and a targeted accumulation value of $200,000. If that value is reached, say, in 17 years, it makes sense to take the risk off the table by moving to cash. You have thus locked-in the next income phase at the targeted amount.

  Importantly, if you build a “floor” to address essential expenses, you may be able to keep aggressive equity positions in place for a longer period of time. 

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