Sean Gates

There's a bit of momentum there.

And so if you said every two years I'm going to rebalance, I think that's perfectly fine.

You can go through the mental exercise of evaluating things on a shorter timeframe, but you don't have to do anything, right?

There's no forced mechanism of rebalancing.

But you could say every six months we're going to review how things are doing.

If certain elements of my portfolio are doing very well, I don't have to do this at a six month regimen.

I'm just checking in with it and then we'll do it again in the next six months.

And you actually pull the trigger when you feel comfortable.

And then again, timing isn't the only component, right?

So if you have an outsized position, if something has grown to a very large position, that should be a determinant.

And again, it's always tied back to your level of volatility adherence.

But if something gets to like a 20% weight of your overall portfolio, and everyone kind of has different measures of what that percentage allocation should be, that's probably a good time, regardless of if you have a two-year rebalance evaluation or a six-month evaluation,

you should probably consider rebalancing when something gets too big in your portfolio.

Yeah, I mean, I think the thing I would mention is just that in financial planning world, there's always this notion of what is the investor rate of return, right?

Because you can quote the S&P 500 and say it gets 10% per year, but the actual investor in the S&P 500 never achieves that rate of return because they're tinkering with their portfolio too much.

Hence me saying I'm actually cool with

a slower rebalancing process because by and large, the people who just don't mess with their account very much tend to do better than the people who are over tinkering with their portfolio.

The only caveat that I will mention with respect to that is,

When you're constructing your portfolio or your target allocation to rebalance around, it helps to have a conservative portion of any kind, even cash, to temper bad behavior.

So April is a great example where I was fielding calls this year in April from large accounts