Episode 181: Fun With Rebalancing Schemes And More Financial Services Industry Malfeasance

<p>In this episode we answer emails from Brian, Grant and MyContactInfo.  We discuss rebalancing mechanisms and rules for various kinds of portfolios and the big discount brokers.<br/><br/>Links:<br/><br/>Optimized Rebalancing Article:  <a href='https://www.kitces.com/blog/best-opportunistic-rebalancing-frequency-time-horizons-vs-tolerance-band-thresholds/'>Optimal Rebalancing – Time Horizons Vs Tolerance Bands (kitces.com)</a><br/><br/>Brian&apos;s Golden Butterfly with Annual Rebalancing:  <a href='https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&amp;mode=1&amp;timePeriod=2&amp;startYear=1972&amp;firstMonth=1&amp;endYear=2021&amp;lastMonth=12&amp;calendarAligned=true&amp;includeYTD=false&amp;initialAmount=10000&amp;annualOperation=3&amp;annualAdjustment=0&amp;inflationAdjusted=true&amp;annualPercentage=3.75&amp;frequency=4&amp;rebalanceType=1&amp;absoluteDeviation=5.0&amp;relativeDeviation=25.0&amp;leverageType=0&amp;leverageRatio=0.0&amp;debtAmount=0&amp;debtInterest=0.0&amp;maintenanceMargin=25.0&amp;leveragedBenchmark=false&amp;portfolioNames=true&amp;portfolioName1=Golden+Butterfly+With+3.75+Annual+Distribution&amp;portfolioName2=Portfolio+2&amp;portfolioName3=Portfolio+3&amp;asset1=TotalStockMarket&amp;allocation1_1=20&amp;asset2=SmallCapValue&amp;allocation2_1=20&amp;asset3=LongTreasury&amp;allocation3_1=20&amp;asset4=ShortTreasury&amp;allocation4_1=20&amp;asset5=Gold&amp;allocation5_1=20'>Backtest Portfolio Asset Class Allocation Brian #1  (portfoliovisualizer.com)</a><br/><br/>Brian&apos;s Golden Butterfly with Rebalancing Bands:  <a href='https://www.portfoliovisualizer.com/backtest-asset-class-allocation?s=y&amp;mode=1&amp;timePeriod=2&amp;startYear=1972&amp;firstMonth=1&amp;endYear=2021&amp;lastMonth=12&amp;calendarAligned=true&amp;includeYTD=false&amp;initialAmount=10000&amp;annualOperation=3&amp;annualAdjustment=0&amp;inflationAdjusted=true&amp;annualPercentage=3.75&amp;frequency=4&amp;rebalanceType=5&amp;absoluteDeviation=5.0&amp;relativeDeviation=25.0&amp;leverageType=0&amp