Re: Rebalance 401k Investments?

Tony Sivori <TonySivori@[EMAIL PROTECTED]
> writes:

> It looks like I was wrong to be so suspicious of it. But on the other
hand
> it isn't a wonderful thing either. Since all of my investments are
> of similar risk, I don't have to worry about that getting out of whack.
I
> won't be re-balancing.

It's not just about them being of "similar risk" - it's also
about them being *uncorrelated* in order to reduce risk overall.

There shouldn't be any need to constantly rebalance or even
do so once per quarter.  As infrequently as once per year
or two is probably adequate, at least if we're talking about
rebalancing with respect to asset classes.  You can do that
yourself - you don't need any automatic program or such
for this, and it shouldn't take more than an hour or two
to do.

If you're talking about individual stocks, it's a whole
different story, of course.



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