Ive been funding a mid-term (10-15 years from now) brokerage with VTSAX (80%) and VTIAX (20%) for the past 5 years. With no interest rates at or near their peak, is now the time to start rebalancing with bonds?
The decision to rebalance your portfolio by adding more bonds should be based on your risk tolerance, investment goals, and time horizon, not just the current interest rates.

VTSAX (Vanguard Total Stock Market Index Fund) and VTIAX (Vanguard Total International Stock Index Fund) are both stock index funds that provide broad, diversified exposure to the U.S. and international stock markets respectively. They can offer higher potential returns but also come with higher volatility and risk.

Bonds, on the other hand, typically offer lower potential returns but also lower risk and volatility. They can help provide income and stability to your portfolio, especially during times of market downturns.

If you're planning to use the money in your brokerage account in 10-15 years, you might want to consider gradually adding more bonds to your portfolio to reduce risk and volatility as you get closer to your investment goal. However, with interest rates at or near their peak, bonds may be less attractive as their prices tend to fall when interest rates rise.

It's also important to remember that rebalancing doesn't just involve adding more bonds. It also involves maintaining your desired asset allocation by periodically selling some investments that have performed well and buying more of those that have not.

Before making any decisions, you should consider your overall financial situation, risk tolerance, and investment objectives. It's also a good idea to consult with a financial advisor or a trusted financial professional.
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Ive been funding a mid-term (10-15 years from now) brokerage with VTSAX (80%) and VTIAX (20%) for the past 5 years. With no interest rates at or near their peak, is now the time to start rebalancing with bonds?

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The decision to rebalance your portfolio by adding more bonds should be based on your risk tolerance, investment goals, and time horizon, not just the current interest rates.

VTSAX (Vanguard Total Stock Market Index Fund) and VTIAX (Vanguard Total International Stock Index Fund) are both stock index funds that provide broad, diversified exposure to the U.S. and international stock markets respectively. They can offer higher potential returns but also come with higher volatility and risk.

Bonds, on the other hand, typically offer lower potential returns but also lower risk and volatility. They can help provide income and stability to your portfolio, especially during times of market downturns.

If you're planning to use the money in your brokerage account in 10-15 years, you might want to consider gradually adding more bonds to your portfolio to reduce risk and volatility as you get closer to your investment goal. However, with interest rates at or near their peak, bonds may be less attractive as their prices tend to fall when interest rates rise.

It's also important to remember that rebalancing doesn't just involve adding more bonds. It also involves maintaining your desired asset allocation by periodically selling some investments that have performed well and buying more of those that have not.

Before making any decisions, you should consider your overall financial situation, risk tolerance, and investment objectives. It's also a good idea to consult with a financial advisor or a trusted financial professional.<eos_token>