Episode 252: Factor Funds, Portfolio Construction Principles, Rebalancing Research And Portfolio Reviews As Of April 7, 2023
Risk Parity Radio
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How to Rebalance Your Portfolio
The idea of rebalancing one-twelfth of your portfolio every month sounds very sensible. When interviewed about this by the folks from Simplify, they happen to mention something very interesting about how dollar cost averaging works for you during accumulation, but works against you during de-cumulation. The alternative of withdrawing a large sum once per year, or rebalancing your cash allocation, reduces this volatility drag effect,. But is implicitly a market timing decision and opens you up to bad luck.
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