Re-balance Cycle Reminder All MyPlanIQ’s newsletters are archived here.

For regular SAA and TAA portfolios, the next re-balance will be on Monday, April 28, 2014. You can also find the re-balance calendar for 2013 on ‘Dashboard‘ page once you log in.

As a reminder to expert users: advanced portfolios are still re-balanced based on their original re-balance schedules and they are not the same as those used in Strategic and Tactical Asset Allocation (SAA and TAA) portfolios of a plan.

Please note that we now list the next re-balance date on every portfolio page.

Time Diversification

Among tens of thousands of MyPlanIQ users, many of you are very experienced. These power users have greatly helped to shape up our products. We thank them for their insights and constructive suggestions. In this newsletter, we are addressing an important issue for our Tactical Asset Allocation strategy: the day of a month to do rebalance.

Many users often have questions on why we choose a particular day of a month to rebalance. Our rebalance calendar turns out to be pretty random: we developed this calendar purely based on the need to make sure each rebalance day should be at least more than 30 calendar days apart and it should be on the first trading day of a week (often a Monday). Other than this, there isn’t any magic in it. However, a natural question follows: how effective such a ‘random’ rebalance day is? Furthermore, what happens if there is some significant event before the next rebalance day? Can we improve this?

Before we go on to show our studies, we would like to remind our users of a feature to allow you to specify a rebalance day of a month when you customize a Tactical Asset Allocation or Strategic Asset Allocation  based portfolio (not the advanced ones). We announced this feature on January 6, 2014: Lessons Learned in 2013. The feature is currently available to expert and pro subscribers. 

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