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by objclxt
3308 days ago
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> Index funds are basically set it and forget it, so why would I want to continuously use this app? Just buy some $SCHB, $SPY, $VTI, or whatever combo of index funds you want and that's it. Because of re-balancing. Say you invest in three index funds at a 70/20/10 split. One of those funds performs much better than the others over time, leaving you with a distorted ratio. So you re-balance to get back to your original 70/20/10. Typically you'd re-balance one or two times a year. Ideally you want to avoid selling to rebalance, so if you're investing regularly (once a month, for example) you want to know exactly which funds to put your money in to each time to maintain your percentage split. |
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