Personal Investments • How do you rebalance a portfolio?

Context: still new-ish to investing. In my late 20s, so I have time. I have been mindlessly buying all-VTSAX this whole time so my only international exposure has been in my 401k target retirement fund. My current AA is something like 80/15/5, and I'd like to get to something more like 60/30/10 or even 50/40/10.

These are the methods I can think of:

1. Immediately sell/rebalance in one big lump. New purchases made to target AA. Pros: It's over and done with. Cons: Big tax bill all in one year. Plus things are still a little volatile.

2. Wait for things to settle before doing the lump sum rebalance, i.e. we have actual hard policy somewhere and BH lifts the moratorium on tariffposting. New purchases made to target AA. Same pros and cons as #1, but "feels better"? Is this irrational?

3. DCA the rebalance over the next year(s). Pros: smears the tax out over time. Cons: takes longer. Again, a "feeling" of being safer against current volatility. Is this irrational?

4. Don't sell anything; just make 100% of new purchases VXUS until I reach target AA. Pros: no selling into volatility during taxes. Cons: takes longer, also 1-2 years.

5. Any better method that I haven't thought about.

Statistics: Posted by imaqt314 — Fri Mar 14, 2025 5:10 am — Replies 0 — Views 66

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