My retirement is allocated as follows:
US large cap 60%
US mid/sm cap 25%
International equity 10%
US bonds 5%
They are all low cost index funds.
If I leave these weights as is I understand that with time the weights can shift depending on the performance of each. But why does that matter? Let’s say US large cap does well and the weight shifts to 62% and bonds suffer and drop to 3%. Should I rebalance or will the market so that for me over time? I really don’t want to manage it and my company doesn’t offer any target funds. What would happen if I just left it the next 20 years? Am I shooting myself in the foot?