How this number is made
Rebalancing sells what grew above its target and buys what fell below. This page is two buckets. Taxes on a sale in a taxable account are not computed.
- The target is the stock share. Bonds get the rest.
- The dollars to move are the trade, before tax and before a trading cost.
Formula
Target stocks = total × stock percent. Trade = target − current stocks. A positive trade means buy stocks.
Worked example
With the figures already in the form, sell this much stock is $12,000.
Questions
How often should I do this?
On a calendar, or when a weight drifts past a band you chose. The page does not know your band.
What about a third fund?
Split the bond bucket in your head, or run the page twice. Three-fund tax location is not here.