Transcript:
Easan Arulanantham:
So when we’re talking about rebalancing, um, how’s the account, like taxable type, like really affect these rebalances? Because if I was in a taxable account, I don’t feel like I could be selling and buying as much.
Tom Vaughan:
Yeah, that’s exactly right. So we can do rebalance things on a constant basis now on a non taxable account, right? Tax Free or tax deferred accounts, because there’s no transaction costs any longer. And because you know, there’s no taxes, but you get to a taxable account, you don’t have a transaction cost, but you do have a tax. So we actually go through the taxable accounts by hand, kind of one at a time. And you really have to make a determination within those, whether or not you should be taking that game. And so sometimes, yes, and sometimes no. And so, you know, I have a whole bunch of different criteria, what have you, it’s a different methodology, but overall, the same concept, you’re still trying to, you know, take what has, you know, cut what you have confidence in, that has dipped, and buy that and sell whatever else held up the most in that timeframe. So that’s still there. Yeah, that is definitely a different total methodology. We use the IRebal, just to give us a picture, and then we go through by hand and figure out what needs to be sold or bought or nothing, right. So a lot of times, we don’t do anything, they have to wait until there’s a bigger differential to make it worthwhile. You know, you also have to report each one of those transactions. So that can be kind of a pain. You don’t want to have hundreds of transactions, you know, on your, on your tax return. So, you know, we don’t have to worry about that either on the IRAs or the Roth IRAs, too, so but it’s a good question. It’s definitely a piece of the puzzle.