• Zach

Quarter 2 "Re-balancing": That Was Easy!

Updated: Feb 22, 2019


On March 1, I added about $12,000 to my investments, and worked out how I could do that to maintain my desired 80/20 stock/bond split. I predicted then that I wouldn't have money to put in on June 1, due to the giant rent cheque for a year's rent. I was right. So this quarter I just had to check to see what my stock/bond allocation was, and sell one and buy more of the other to re-balance.


The good news was that my percentages hadn't changed since I re-balanced. It was still bang on 80/20. That meant I didn't have to do anything! Sweet! So why even write this post about doing nothing? That's a good question, imaginary reader!


I had two main reasons. The first was that one of the main reasons for this blog is to keep myself disciplined and sticking to my financial plan. I figure if I feel pressure of other people looking over my shoulder, I'll be more inclined to do what's right. Quarterly re-balancing is a critical part of my plan, so I should attend to it, even if it's all balanced anyway.


The second reason is that it's good practice to be reflective, and think through what's happened and see if I can learn from it. Writing down my thoughts here helps me do that. If, in the future, I want to see where I went wrong or right, having these thoughts will help me navigate my past state of mind and learn from my own mistakes.


With that, I'll sign off for today. As always, feel free to comment and subscribe so that you can keep following this journey, and see if I fall off the wagon of my own making.


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Disclaimer: The views expressed is provided as a general source of information only and should not be considered to be personal investment advice or solicitation to buy or sell securities. Investors considering any investment should consult with their investment advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decisions. The information contained in this blog was obtained from sources believe to be reliable, however, we cannot represent that it is accurate or complete.

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