I was previously 100% in a target date fund but since i’m in my 20s i decided to avoid bonds and decided to change it to a 70% s&p 500 and 30% international equity fund investment.
It gives me an option to have it automatically rebalance current and future contributions in my 401k and rebalance periodically either every 90, 180 days or annually.
I’m not sure I understand what the benefit of this is. How often would you recommend automatic rebalancing in 401k? I assume since it’s a 401k I won’t need to pay taxes every time it rebalances but correct me if i’m wrong.