We have an old TIAA CREF account that holds about 8% of our retirement portfolio. It has been invested the same way since it was established, 20% TIAA Trad, 10% TIAA RE, 30% CREF Stock, 15% CREF Growth, and 15% CREF Equity Index.
Last year, this account returned 18.8%, and historically it has slightly outperformed our other accounts (primarily because there are no bond funds in it).
It is set to rebalance in March (once a year). Because TIAA RE had such an abysmal year (down 13.5% since last years rebalance), and all the other holdings did relatively well, the rebalance will result in a little bit over 3% of the account value being sold from the stock holdings and going into TIAA RE.
So, here's my question ... should I turn off the rebalance? I would never purchase TIAA RE with new money at this point ...
Or should I trust the process, which has worked pretty well, and let it rebalance? Perhaps I would be buying the bottom ...
Another option would be to just dump the TIAA RE entirely, but I feel like I would be locking in the loss if I did that.
In the grand scheme, it's a very small part of our portfolio, but I tend to obsess over these small details.
If it matters, we are 54 and 51 and 8 and 11 years away from retirement minimum. The remainder of our accounts are roughly 80/20 and we have no other RE holdings other than our home and whatever is in the broader market indexes.
Last year, this account returned 18.8%, and historically it has slightly outperformed our other accounts (primarily because there are no bond funds in it).
It is set to rebalance in March (once a year). Because TIAA RE had such an abysmal year (down 13.5% since last years rebalance), and all the other holdings did relatively well, the rebalance will result in a little bit over 3% of the account value being sold from the stock holdings and going into TIAA RE.
So, here's my question ... should I turn off the rebalance? I would never purchase TIAA RE with new money at this point ...
Or should I trust the process, which has worked pretty well, and let it rebalance? Perhaps I would be buying the bottom ...
Another option would be to just dump the TIAA RE entirely, but I feel like I would be locking in the loss if I did that.
In the grand scheme, it's a very small part of our portfolio, but I tend to obsess over these small details.
If it matters, we are 54 and 51 and 8 and 11 years away from retirement minimum. The remainder of our accounts are roughly 80/20 and we have no other RE holdings other than our home and whatever is in the broader market indexes.
Statistics: Posted by Money_Badger — Tue Jan 30, 2024 8:19 pm — Replies 2 — Views 207