I wrote a guest post over at Money Ning earlier this week that addresses this very issue.   Lots of folks have been asking this question since everything seems to be moving up and down together.  People are questioning the value of portfolio re-balancing in this environment.

It’s actually a very difficult question to answer.  I go through how to do it and why you might want to do it in the article so if that is of interest, I recommend you drop by Money Ning.

The bottom line is that sometimes, re-balancing isn’t the issue.  The big issue today is strategy.  In other words, if your strategy includes re-balancing – then do it. If you use another method to manage your money, now is probably not the time to abandon it.

It’s tempting to blame your market losses (or ascribe your gains) to the strategy or the advisor.  And sometimes you may in deed have the wrong strategy or advisor.  But other times, like right now, the market is the issue.  If you change your strategy just because the market has tanked – you’re probably going to do yourself more hard than good.

Other Articles Worth Reading

My friend Mike over at The Oblivious Investor wrote a very interesting article called, “Are stocks safer than bonds?” Read it and let me know what conclusion you come to.

Frugal Dad wrote about the dangers of credit cards for teens.  An important read for you and your children.

Patrick at Cash Money Life wrote about the importance of leaving money in your retirement accounts.

There was also a nice article over at Wise Bread about the bottom in real estate prices.  Nicely done!

And for a nice piece on Geithner’s toxic asset plan, check out Yet Another Blog about Money

Like this article? You will love getting my free brilliant financial updates! No spam, and I won't give your email address to any other person or company. That's a personal promise. Neal Frankle, Certified Financial Planner, Los Angeles, California.

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