Question

Ok possible dumb question incoming. As I’ve listened to the show I’ve become more and more interested in The Golden Butterfly. I use TD Ameritrade and I have created my Golden Butterfly watch list - my question revolves around the 20% each asset guideline - if I want to follow this properly do I wait until I’m willing to buy one of each asset at the current price? So I always have equal shares of everything? Or is it ok to rotate my purchases ex. every month I’m gonna deposit $500 into my account and buy how ever many shares I can of that months designated asset class? So I might only be able to get 3 shares of gold but next month my $500 might get me 7 shares of the small cap. Does that make sense? Any feedback is appreciated and if this can easily be found on google sorry; I was just trying to be active in the community.  

Answer 1

So you’re essentially DCA’ing every month and rebalancing the slices with new money? That’s a good plan. M1 finance does this for you automatically with new money AND they buy fractional shares. You can also rebalance anytime.  

Answer 2

Just buy these funds and rebalance every time you invest. Don't over think it. It doesn't have to be perfect.  

Answer 3

The significance is the value in each, not the number of shares. So if you’re putting $500 towards each, that’s all that matters. Their values will fluctuate over time, so once you have all the positions you want, you’ll want to rebalance the values as you continue to contribute to the portfolio, or at least rebalance annually if you are no longer contributing.