Video Overview
The video reads an asset-allocation question from a writer who has not retired. The stated portfolio is 70% 00662, 20% 00670L, and 10% 00864B. The writer asks whether each new contribution should follow those percentages or mainly purchase 00662, and is also unsure how to respond when transfers in rising or falling years make the portfolio diverge from its target again. For this case, the speaker proposes using eight months of annual salary contributions for 00662, two months for 00670L, and two months for 00864B. At year-end, the response suggests either a simpler 2-to-1 adjustment between 00670L and 00864B or a complete 7-to-2-to-1 adjustment across all three holdings. The speaker adds that a working investor can focus on broadly correct proportions instead of exact arithmetic. These ratios and procedures are the speaker's case-specific views.
Key Takeaways
- The stated portfolio is 70% 00662, 20% 00670L, and 10% 00864B.
- The writer asks how new money and transfers in rising or falling years affect rebalancing.
- The speaker proposes an eight-two-two monthly contribution pattern for this case.
- Two year-end options are presented: a simpler 2-to-1 adjustment or a full 7-to-2-to-1 ratio.
Chapters
About 00:00:08 · A question about purchase proportions
The writer lists three holdings and asks how new contributions should be allocated.
About 00:00:32 · Rebalancing in rising and falling years
Examples involving 100,000, 50,000, and 2% of assets illustrate the writer's confusion.
About 00:01:15 · Two year-end adjustment methods
The speaker explains monthly contributions and the 2-to-1 and 7-to-2-to-1 approaches.
Related Topics
asset allocation, rebalancing, 00662, 00670L, 00864B
This page was prepared with AI from selected portions of the video's audio to help readers understand the main topics. It may omit secondary material or contain transcription errors; the original video remains authoritative.
