Latest posts by Wanderer (see all)
- Investment Workshop 51: Transfer-Palooza In Progress - November 22, 2017
- Investment Workshop 50: Goodbye TD Ameritrade, Hello Vanguard! - November 15, 2017
- The Three Paths to Financial Independence - November 13, 2017
Hello again and welcome back to the Millennial Revolution Investment Workshop! New readers, please click here to start from the beginning.
Right now, sitting in my inbox, are about a hundred emails all asking the same question:
How do you calculate how to rebalance your portfolio?
And I will freely admit, I haven’t been the best at answering this question. For the longest time, we’ve been calculating our buy orders using a lame-ass spreadsheet with lame-ass Excel formulas, and I’ve steadfastly refused to release them publicly because the entire thing is just hacked together and I don’t want that garbage floating around on the Interwebs.
What I’ve actually wanted to do for some time is to find some kind of spiffy calculator out there that people can use with pretty graphs and charts and shit to do this, and then I can link to that. But unfortunately, after months of searching I never did manage to find one that did what we wanted.
So we built it ourselves.
May I Introduce…the MathShitUp-Inator!
OK so here’s how it works. The MathShitUp-Inator will be our living, breathing toolbox for the FI community. Right now, there’s just one tab: The Rebalancer, but more will be added in the future as we develop this tool.
So first, let’s click on over to the “Rebalancer” tab.
You’ll see a table where you can put in your portfolio information.
And…that’s it! Once you’re done inputting your portfolio information, the Rebalancer figures out what your current portfolio allocation is, what it needs to be, and the buy/sell orders required to get you back on track. I’ve actually been using this tool behind the scenes for the last few weeks to figure out our bi-weekly Workshop Portfolio buys, but now you can play with it too!
Let’s give it a go, shall we?
For our Canadian portfolio, we start by putting our ETFs into the Rebalancer…
This is what our current portfolio looks like…
This is what we want it to look like…
And this is how far each asset is from target…
So in order to rebalance, we need to do this…
And after rebalancing, our portfolio will look like this…
And on the American side, we start by putting our portfolio into the Rebalancer…
This is what our current portfolio allocation looks like…
And this is what we want it to look like…
So in order to rebalance, we need to do the following…
And after we do that, this is what our portfolio will look like…
And that’s it!
And we’re done! So that’s the Rebalancing calculator you guys/gals have been asking for. Give it a whirl, and let me know if you run into any problems in the comments, or over email.
And also, despite the fact that every book about the “business side of blogging” out there is telling us we’re supposed to put “extra features” like this behind a paywall for “Gold Members Only” or whatever, we went “SCREW THAT” and decided to just give it away for free along with everything else on this site. If you find it helpful and want to support us making more tools like this, we put a donate button at the bottom of the Rebalancer, but it’s completely optional whether you want to do that.
That’s it! Peace out!
How much does it cost to participate in this investment workshop? NOTHING. Because that's how we roll. All we ask is that you sign-up using the following affiliate links to keep it free forever:
NOTE: Due to their recent changes for their commission-free ETF program, we can NO LONGER RECOMMEND TD Ameritrade. We are currently seeking out a new brokerage to partner with and will let you know when we find one.
2) Personal Capital
Disclaimer: The views expressed is provided as a general source of information only and should not be considered to be personal investment advice or solicitation to buy or sell securities. Investors considering any investment should consult with their investment advisor to ensure that it is suitable for the investor’s circumstances and risk tolerance before making any investment decisions. The information contained in this blog was obtained from sources believe to be reliable, however, we cannot represent that it is accurate or complete.