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If you're going to use a small-cap index like the Russell 2000, you might wish to pause and think about why a good index fund firm, like Vanguard, doesn't have any kind of funds that follow it. The factor is because it's a lousy index.
I haven't even addressed the straw guy right here yet, which is the truth that it is fairly rare that you in fact need to pay either taxes or considerable commissions to rebalance anyhow. I never ever have. A lot of smart investors rebalance as long as possible in their tax-protected accounts. If that isn't quite sufficient, early accumulators can rebalance totally utilizing brand-new contributions.
And of training course, nobody ought to be purchasing loaded mutual funds, ever before. It's really also poor that IULs do not work.
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