No. Rebalance is done by you. For example I am 20% G, 30% C, 30% S and 20% I. As the stock market goes up and down those percents will change over time as one fund does better than the other. You can call this... the funds get out of balance. You can set your own parameters for rebalancing. You could rebalance once or twice a year. At least rebalance once a year is recommended by experts. Or you could use a percentage to determine when to rebalance. So if your fund is say 5% over or under you original investment mix, you could rebalance.
I rebalanced today just to use the site and get familiar with it. My G fund had become 23% and my stock funds where down a 1% of 2%. So I rebalanced to my original 20/30/30/20 mix. You want to use the first option "change your investment mix" at the TSP. This gives you 2 options, to change your mix, allocations or both.
By rebalancing, it forces you to sell high and buy low. Every investors dream.
***Now... if you are in a "target date fund". They do rebalance because it is a glide path fund. Not sure if it is daily or how it rebalances but you do not have to do anything. The fund balances itself.
Paul Merriman 2 fund strat: (age - 25) x2.5 = TDF + balance into S fund or variation ofTimboSlice wrote: "People really need to stop overthinking this."