December 19, 2009

Rebalanced 401(k)

I just finished rebalancing my 401(k) to move our current asset allocation back in line to ouroriginally planned asset allocation.

The percentages weren't off by much, but I figure this is a good habit for us to get into at the end of each year. Here's what the 401(k) looked like:

Here's what it was rebalanced to:

My wife's 401(k) was opened mid way through the year and is a much smaller balance, so we're not going to bother rebalancing it this year.


Money Reasons said...

Good job! I haven't rebalanced my portfolio in a long time... After the "Great Recession", I just let it ride.

Unfortunately, for me, my portfolio was a bit to agressive (at one point I was down 40%) - OUCH...

When (and if) I ever break even again, I'll definitely follow a more middle of the road risk allocation and start rebalancing at least once a year.

Nice site you have here!

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1MansMoney said...

Money Reasons-

Thanks for commenting. This "Great Recession" has been a perfect buying opportunity for those of us in the accumulation phase of our retirement planning. As long as we can stay employed and keep contributing to our retirement accounts, this should really help our nest egg.