Time to Rebalance?
As year-end approaches, is it time to lock in those gains or losses in your taxable account, with an opportunity to rebalance your portfolio? Making adjustments to your stock/bond allocation is a cornerstone of maintaining a well-structured investment strategy so that your need and ability to take on short-term risk can match your quest for higher long-term returns.
The Importance of Rebalancing
Asset classes perform differently over time. That means the allocation of your portfolio will start to drift. If the portfolio is not rebalanced, it could become riskier than when you started.
Take a moment and read “How to Rebalance a Portfolio” for a comprehensive guide on this strategy. Whether you prefer calendar-based or threshold-based rebalancing, understanding the benefits and considerations can help you make informed decisions.
Strategies for Long Term Investing
Rebalancing is an important tool for maintaining your portfolio’s original asset allocation and keeping your risk profile in line with your overall risk tolerance. If you want to understand how rebalancing can help your portfolio, connect with me on a complimentary strategy call.* We can explore the methods, benefits, and practical tips to keep your portfolio on track.
* Limit one complimentary offer per household, per 18 months. Only applicable to households with minimum investable assets of $25,000. Offer criteria may be waived at Edelman Financial Engines' discretion.