Wall Street HATES This: The Rebalancing Trick That Costs Them Billions

Описание: There's a simple trick that takes 15 minutes per year and costs Wall Street BILLIONS in lost fees.
It's called rebalancing. And they pray you never learn how to do it yourself.
What is rebalancing?
Once per year, you adjust your portfolio back to your target allocation. Sell what's risen. Buy what's fallen. That's it.
Why Wall Street hates it:
If you can do this yourself in 15 minutes, why pay advisors $5,000+ per year?
The shocking data:

Adds 0.35-0.40% to annual returns
Reduces portfolio volatility
Forces you to buy low, sell high automatically
Takes 15 minutes annually

Real wealth impact over 30 years:

With rebalancing: $1,850,000
Without rebalancing: $1,725,000
Difference: $125,000 from 15 min/year
That's $16,000+ per hour of work

How rebalancing makes you rich:

2008 crash: You buy stocks at the bottom
2009 recovery: Those bargain purchases soar 26.5%
2020 crash: You buy again at lows
Result: You capture every recovery automatically

The complete rebalancing guide:
Step 1: Set target allocation (age-based)

Age 30: 70% stocks / 30% bonds
Age 50: 50% stocks / 50% bonds
Age 70: 30% stocks / 70% bonds

Step 2: Once per year, check current allocation
Step 3: Sell overweight assets, buy underweight assets
Step 4: Done for the year
Vanguard studied every rebalancing method:

Monthly, quarterly, annual, threshold-based
Result? They all work similarly
Annual is optimal (simple + minimal costs)

Wall Street's lie: "Rebalancing requires expertise, market timing, and professional judgment."
The truth: Calendar-based rebalancing beats their tactical allocation strategies.
Why it works:
✓ Forces buy low, sell high
✓ Captures mean reversion
✓ Maintains risk levels
✓ Prevents panic during crashes
✓ Costs exactly $0
Example: 60/40 portfolio during 2008-2009
Without rebalancing: $92,337
With rebalancing: $92,663
Difference: $326 from ONE rebalancing trade
Multiply across 30-40 years of crashes and recoveries: hundreds of thousands in extra wealth.
If every investor rebalanced themselves, Wall Street would lose billions annually in advisory fees.
Stop paying for something you can do in 15 minutes. Start keeping your wealth.
#Rebalancing #PortfolioManagement #JackBogle #WallStreet