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, November 24, 2014. You can also find the re-balance calendar for 2014 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.

Fixed Income or Cash

Many popular investment strategies usually pay more attention to risk assets than fixed income assets, especially cash. Many investors treat cash as a boring asset and thus simply let their money lying around there, picking up whatever interests paid by a brokerage or a bank. However, utilizing cash or fixed income (bond) assets smartly can make a very material difference on investment returns without incurring much additional risk. 

The following portfolio P SMA 200d VFINX Total Return Bond As Cash Monthly is similar to P SMA 200d VFINX Monthly that was mentioned in our newsletter October 27, 2014: Investment Loss, Mistakes And Market Cycles. It uses 200 days simple moving average (SMA) of S&P 500 index total return (using Vanguard 500 index fund VFINX) as a signal: when VFINX is above its 200 day moving average, it buys or holds VFINX, otherwise, it buys ‘cash’. This buy or sell decision is tested once a month, on the last trading day of a month. The difference here is that when it buys ‘cash’, it actually switches to Schwab Total Return Bond, a total return bond portfolio that one can find on page Fixed Income Bond Fund Portfolios (for total return bond fund portfolios, see for example  June 3, 2013: Total Return Bond Fund Portfolios For Major Brokerages). 

Portfolio Performance Comparison (as of 11/10/2014):

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