Broker Check
23 - Investing Controllables Part 6 - Rebalance Regularly

23 - Investing Controllables Part 6 - Rebalance Regularly

March 31, 2023

Who May Benefit? Everyone

What Is It? Rebalancing aligns a portfolio back to the intended asset allocation.

Why Is This Valuable? Rebalancing keeps portfolio volatility in line with your goals and risk tolerance. There are pros and cons to rebalancing. Research has shown that rebalancing can protect against reversals and help maintain the targeted volatility of your portfolio, but it can reduce performance in trending markets.

How Do I Do This? Many accounts may offer automatic rebalancing. Manual rebalancing may just involve some basic math and a few trades. Be sure to weigh the potential benefits and drawbacks of rebalancing before implementing it in your investment strategy.