Why Retirees Should Think Twice About Rebalancing Monthly

Episode 117 of Retirement Planning with Fexingo. Lucas and Luna challenge the conventional wisdom that retirees should rebalance their portfolios monthly or quarterly. They drill into a specific 2026 Vanguard study showing that a simple 5 percent drift-trigger rebalancing strategy (rebalance only when an asset class strays more than 5 percent from target) actually outperformed calendar rebalancing over the last 20 years by roughly 0.3 percent annualized, with lower turnover and fewer taxable events. The hosts discuss why the 'set it and forget it' approach can backfire for people drawing down assets, explain the math behind drift thresholds, and walk through a concrete example using a 60/40 stock-bond portfolio. They also touch on how sequence-of-returns risk interacts with rebalancing frequency, and why retirees in particular should avoid the trap of over-tinkering. The episode ends with a forward-looking question about inflation-adjusted drift triggers. #Rebalancing #RetirementPortfolio #Vanguard #DriftTrigger #SequenceOfReturns #60-40Portfolio #WithdrawalStrategy #TaxEfficient #PortfolioManagement #AssetAllocation #RetirementPlanning #Fexingo #FexingoBusiness #BusinessPodcast #Finance #Retirement #Investing #2026 Keep every episode free: buymeacoffee.com/fexingo