Should You Even Bother To Rebalance Your Portfolio?

Investors often ask, “When should I rebalance my portfolio?”

Most are looking for a perfect time of year.Others want to know if they should rebalance once a year, once a quarter, or during every full moon.

Vanguard back-tested a portfolio that was split 60/40 between U.S. stocks and U.S. bonds between 1926 and 2009.

They didn’t bother with lunar cycles.

But they did test four scenarios: rebalancing the portfolio monthly, quarterly, annually and never.

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