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

Regular AAC (Asset Allocation Composite), SAA and TAA portfolios are always rebalanced on the first trading day of a month. the next re-balance will be on Tuesday September 1, 2020.

Please note: As of March 1, 2020, we officially phased out our old rebalance calendar for both SAA and TAA. They are now always rebalanced on the first trading day of a month. 

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.

Target Maturity Bond ETFs For Short Term Cash

We have discussed a special type of bond ETFs before: they were called target or defined maturity ETFs (March 7, 2016: Defined Maturity Bond Fund Analysis,  October 14, 2013: Manage Cash Investments Smartly). These bond ETFs buy and hold bonds that are going to mature in about same times, thus the named ‘target maturity’ or ‘defined maturity’. 

Since our previous newsletter in 2016, more such ETFs have been introduced into markets. What’s more, their fees have dropped to a very reasonable level. We now believe these ETFs can be really used as some type of short term cash investments. 

Fixed income investments based on cash flow expectation

Though one can use a single risk profile concept to allocate capital into stocks (funds), bonds (funds) and cash,  a more elaborate approach based on when some portion of capital is needed can be more helpful and intuitive. In general, we advocate the following: 

Please login or register an account to view the newsletter