Song: "Changes" by David Bowie I was never really into David Bowie, and I'd still consider myself more of a "greatest hits fan" than a true aficionado. But these lyrics really speak to me, and it's one of his most famous songs for good reason. The music isn't bad either - listen to the walk up in the bridge, and the sweet sweet saxophone outro. Look out, you rock and rollers! Financial: Rebalancing What is rebalancing? The act of changing the investments in your account to be in balance. A simple example is a target allocation of 50% stocks and 50% bonds. If stocks do well, you might wind up with 55% stocks and 45% bonds, so you'd sell off 5% stocks and purchase bonds with the proceeds. Over time, studies have shown that on a risk-adjusted scale you do better with regular rebalancing. There are different opinions as to how often to rebalance, but 2-3 times per year is a good rule of thumb (and you don't want to be doing it all the time). Some sites or programs can do automatic rebalancing, which can be great for some investors. Either way, making changes is generally a good thing in the world of investments.
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AuthorRussell Hall is a fee-only financial advisor in Orange County, California. Archives
January 2024
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