Jack Bogle's Advice: Avoid Rebalancing Your Investment Portfolio, But Here's How to Do It if Necessary

Jack Bogle: "Never" Rebalance Your Investment Portfolio (and how to do it if you must) Join the newsletter: Resources Mentioned in the Video: Investment Tracking Spreadsheet: Opportunistic Rebalancing paper: Jack Bogle interview: Jack Bogle, the founder of Vanguard, argued that one should not rebalance their investment portfolio. He believed that doing so lowered long-term results. In this video we'll understand why he believed rebalancing was unnecessary, along with good reasons to rebalance a portfolio. I'll also cover how I use what's called Opportunistic Rebalancing in my investment portfolio. #rebalancing #investing #RobBerger Tools & Resources 📚 My Book (of course): 📈 Personal Capital (Investment Tracking): description of video] 💰 M1 Finance $30 Bonus (IRA & Taxable Accounts): 📊 Morningstar (Fund Research): 💵 Tiller (Budgeting): 🏆 Best Investment Tracking Apps: Portfolios 1️⃣ 3-Fund Portfolio: 2️⃣ Merriman Ultimate Buy & Hold Portfolio: 3️⃣ Ray Dalio All Weather Portfolio: 4️⃣ Warren Buffett Portfolio: ABOUT ME While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money. I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom ( LET'S CONNECT Youtube: Facebook: Twitter: DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions. AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom....(read more)

---

LEARN MORE ABOUT: IRA Accounts
CONVERT IRA TO GOLD: Gold IRA Account
CONVERT IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA

---

"Never" Rebalance Your Investment Portfolio: Jack Bogle's Approach and How to Do It if You Must When it comes to managing investment portfolios, there are various strategies and philosophies that investors adopt. However, one legendary figure in the investment world, Jack Bogle, challenged conventional wisdom and offered a thought-provoking perspective on asset allocation – the act of rebalancing an investment portfolio. Jack Bogle, the late founder of Vanguard Group, was a strong advocate for a passive investment approach. He believed in the long-term power of the market and emphasized the importance of keeping investment costs low. While many investment advisors suggest rebalancing portfolios periodically, Bogle famously stated, "Never" rebalance your investment portfolio. His reasoning was quite simple: frequent rebalancing leads to higher costs and potentially lower returns. Bogle believed that investors could benefit from maintaining a steady allocation that aligns with their long-term objectives without the need for regular adjustments. He argued that trying to time the market and consistently rebalance portfolios was more likely to harm investors in the long run. Bogle's philosophy stemmed from his deep belief in the principles of passive investing. Instead of constantly buying and selling stocks or other assets to adjust portfolio allocations, Bogle advised investors to build a diversified portfolio of low-cost index funds and hold onto them for the long term. This approach reduced unnecessary trading fees, minimized taxes, and provided investors with a broad exposure to various market segments. However, Bogle also acknowledged that there may be occasions where investors find themselves with a portfolio out of balance due to market fluctuations or individual circumstances. In such cases, he suggested a more conservative method of rebalancing. Here are a few guiding principles on how to rebalance your investment portfolio, should the need arise: 1. Set a threshold: Rather than rebalancing on a strict schedule, establish a threshold for when you will intervene. For example, if an asset allocation shifts by more than 5% from your target allocation, it could trigger a rebalancing action. 2. Rebalance through contributions: Instead of selling and buying assets to rebalance, consider adjusting your future contributions. Allocate new investments into the underweighted assets to bring them back in line with your desired allocation. 3. Consider tax implications: Be mindful of tax consequences when rebalancing taxable accounts. Selling appreciated assets may result in capital gains taxes, so it's essential to weigh these costs against the benefits of rebalancing. 4. Take a long-term view: Remember that rebalancing is not about chasing short-term market trends but rather ensuring your portfolio aligns with your long-term investment goals. Resist the temptation to make frequent changes based on market noise. While Jack Bogle's steadfast advice of "never" rebalancing your investment portfolio may seem counterintuitive to some, it is reflective of his belief in low-cost, passive investing. While some investors may find value in periodic rebalancing, it is crucial to evaluate the costs and potential benefits associated with the strategy. Ultimately, whether you choose to follow Bogle's approach or prefer a more active investment style, it is essential to be disciplined, well-informed, and align your investment strategy with your long-term financial goals. https://inflationprotection.org/jack-bogles-advice-avoid-rebalancing-your-investment-portfolio-but-heres-how-to-do-it-if-necessary/?feed_id=111672&_unique_id=649a70e9bb5f8 #Inflation #Retirement #GoldIRA #Wealth #Investing #assetallocation #howtoinvest #JackBogle #JohnBogle #opportunisticrebalancing #rebalancing #rebalancingaportfolio #rebalancingindexfunds #rebalancingportfolio #rebalancingstockportfolio #FidelityIRA #assetallocation #howtoinvest #JackBogle #JohnBogle #opportunisticrebalancing #rebalancing #rebalancingaportfolio #rebalancingindexfunds #rebalancingportfolio #rebalancingstockportfolio