Hi again! Wondering about Drip setting

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If we choose to go with drip, some of the stocks may buy more stock, whereas others will not and just produce cash. After a few years won’t this unbalance the percentages you prescribe? … or do we rebalance every year anyway?

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Asked on August 27, 2020 8:17 pm
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Hi there,

Best practice and industry standard is to re-balance once a year. However, if you are just starting out or if you have a long time investment time frame, there is no urgent need to re-balance yearly. It really is investor specific, and how comfortable they are with being overweight in certain areas and how long - it ties into your risk profile. A general rule of thumb is the closer you get to retirement, the more balanced a portfolio should be to reduce risk and portfolio volatility.

Mat

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Posted by Mathieu Litalien
Answered on August 28, 2020 5:21 am
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