First-time buyers under 35 who are saving a cash deposit for a house might want to haul over to Abbey’s website, pronto.
The bank has a new product called the Abbey 5% ‘Home Saver’ Account that at a glance looks ideal for any saver who qualifies.
It certainly beats the UK government’s approach to helping people into the housing market, which amounts to supporting homeowners who over-stretched themselves (although happily to no great affect so far).
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Every week I read a large number of personal finance and investing articles. Here’s my latest shortcut to the best.
Once you’ve committed to rebalancing your portfolio to maintain your chosen asset allocation, you need to decide when you’ll do the deed.
As usual, I’m definitely not going to give you a precise plan on how often you should rebalance. I think there’s no perfect answer, and you need to decide for yourself.
That said, the rest of this post will look at the main approaches to deciding how often you’ll rebalance.
There are arguments made for rebalancing from every period from daily to monthly to once-a-decade.
I have previously discussed why rebalancing your portfolio is a good idea. In short, by reducing or adding to your holdings in different asset classes, you can smooth your returns and keep risk within a level you can tolerate.
How do you actually do it? Well, rebalancing is definitely an art more than a science.
We’ve talked before about how there are no rules for constructing the perfectly diversified portfolio – unless you believe in utterly efficient markets AND you know yourself better than a Zen master and so can anticipate your reaction to any kind of market conditions!
Equally, there’s no perfect method of rebalancing. But there are definitely factors you should keep in mind.
Hence this series on how to go about rebalancing your portfolio.
Make sure you’ve read that first post on why you should rebalance, and please do subscribe or bookmark this site to get the rest of the series.
For the rest of this article, we’ll discuss the crucial decision you must make before rebalancing.
