III. Investings
Rebalancing without overthinking it
Once or twice a year is plenty, and a simple threshold rule can keep costs and taxes low.
A portfolio drifts as winners grow. Left alone, a 60/40 mix can become 75/25 after a long bull market, which means more risk than you signed up for.
A sensible next step
The simplest approach is a calendar rebalance on a fixed date, or a band rule such as trading only when an asset class is five points off target. Using new deposits to top up laggards avoids selling and triggering taxes.
None of this is a forecast, and past performance does not predict future results. Fees, taxes and time horizon matter at least as much as the product itself, and a plan you can stick with through a bad year usually beats a clever one you abandon.
Once or twice a year is plenty, and a simple threshold rule can keep costs and taxes low.
The case in plain English
This article is for information only and is not investment advice. Figures are illustrative and may be delayed or simulated for demonstration purposes.
Filed under Investings