tag:blogger.com,1999:blog-5465015914589377788.post5428164783882286101..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Anti-RebalancingMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-5465015914589377788.post-21038765363172634302014-05-03T10:48:04.964-04:002014-05-03T10:48:04.964-04:00@SK: It's not the marginal tax rate that matte...@SK: It's not the marginal tax rate that matters here, assuming that the RRSP withdrawals will be large. You need to estimate the average tax rate across your RRSP withdrawals. This may be below 30%, particularly if you plan to start drawing from your RRSP before beginning to collect OAS and CPP (and you have no other income).Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-45912849928680094132014-05-03T10:39:14.794-04:002014-05-03T10:39:14.794-04:00Great post as always!
What would be the rebalanci...Great post as always!<br /><br />What would be the rebalancing situation if there are accounts in a TFSA and RRSP?<br /><br />Would the RRSPs be reduced by say, 30% (marginal tax rate) to account for the tax on withdrawals? And then the allocations compared across the two accounts?<br /><br />SKnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-84438805446332120832014-04-30T15:32:35.707-04:002014-04-30T15:32:35.707-04:00@Juan: Investors tend to make poor choices when th...@Juan: Investors tend to make poor choices when they change their allocations, so minimal changes sound good to me.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-33208451125118275552014-04-30T15:30:50.575-04:002014-04-30T15:30:50.575-04:00@AnatoliN: I don't have a post about rebalanci...@AnatoliN: I don't have a post about rebalancing in a non-registered account. However, it is sometimes possible to achieve rebalancing using only trades in registered accounts. I've never had to sell stock in a non-registered account to rebalance. Your mileage may vary.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-63015525216886801922014-04-30T12:45:02.422-04:002014-04-30T12:45:02.422-04:00will check the recommended post. Thank you.
Rebala...will check the recommended post. Thank you.<br />Rebalancing with new contributions I do. I am concerned that I am not rebalancing often enough.<br /><br />If I rebalance with existing funds, I trigger deferrable taxes at non-registered account. Do you have a post with your considerations on which type of funds to use to avoid this?AnatoliNhttps://www.blogger.com/profile/07937984526970646627noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-9047346954933057882014-04-30T12:23:45.804-04:002014-04-30T12:23:45.804-04:00Great reminder. I follow Doug Cronk's blog as...Great reminder. I follow Doug Cronk's blog as well who recommends that individual investors pattern their asset allocation after pension plans and rebalance regularly to those allocations. The Pension Investment Association of Canada (PIAC) publishes the average asset allocation among all their member plans. I've used those averages as a baseline guide for my portfolio and plan to tweak my asset allocations as time goes along and the PIAC averages change. It's interesting to note, though, how little pension plan asset allocations change from year to year.Juan Refritonoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-31065012910952526552014-04-30T10:06:31.581-04:002014-04-30T10:06:31.581-04:00@AnatoliN: There are many approaches that can work...@AnatoliN: There are many approaches that can work just fine. I rebalance whenever my asset classes are out of line by certain amounts as explained here:<br /><br />http://www.michaeljamesonmoney.com/2012/03/portfolio-rebalancing-based-on-expected.html<br /><br />However, simple rules like checking once per year or once per quarter are fine too, as long as you act. Most people are able to rebalance with new contributions. Sadly, they often choose not to buy whatever is cheapest because it seems like such a dog and everyone else is buying the asset classes that have been flying high.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-56356805920897733952014-04-30T09:31:12.172-04:002014-04-30T09:31:12.172-04:00When is time to re-balance? Every month? When one ...When is time to re-balance? Every month? When one of the categories deviates from its target share by xx% or by yy percentage points? Any rationale, rule of thumb, your personal practice or opinion?AnatoliNhttps://www.blogger.com/profile/07937984526970646627noreply@blogger.com