The purpose is to avoid tax drag.
In my case the equity/bond portfolio is extremely volatile. I started building a position in HFEA right when both equities and bonds crashed and now that it’s an extremely significant part of my total portfolio (125k out of 400k) i’m not sure what to do with it.
I am now only recently learning about the affects of tax drag on the portfolio eating up anywhere from 1-4% of the CAGR and how significant this is when you backtest from 83.
I’m planning on just holding this strategy from here on out and not contributing to it anymore.
To be honest I’m not sure how to effectively manage it now though. I tried searching both parts of HFEA and didn’t find anything related to minimizing tax drag.
Also I’d post in the main HFEA thread but there’s barely anyone posting there anymore. I do appreciate @comeinvest and @bond93’s help i’d also like to get more perspectives on what I should do.
Should I just stick to the 55/45 AA every year? Or keep it at a range and only rebalance if the ratio is above 70/30 or below 55/45?
In my case the equity/bond portfolio is extremely volatile. I started building a position in HFEA right when both equities and bonds crashed and now that it’s an extremely significant part of my total portfolio (125k out of 400k) i’m not sure what to do with it.
I am now only recently learning about the affects of tax drag on the portfolio eating up anywhere from 1-4% of the CAGR and how significant this is when you backtest from 83.
I’m planning on just holding this strategy from here on out and not contributing to it anymore.
To be honest I’m not sure how to effectively manage it now though. I tried searching both parts of HFEA and didn’t find anything related to minimizing tax drag.
Also I’d post in the main HFEA thread but there’s barely anyone posting there anymore. I do appreciate @comeinvest and @bond93’s help i’d also like to get more perspectives on what I should do.
Should I just stick to the 55/45 AA every year? Or keep it at a range and only rebalance if the ratio is above 70/30 or below 55/45?
Statistics: Posted by okmanl — Sun Feb 25, 2024 8:53 pm — Replies 6 — Views 597