Loading…
Rebalancing means periodically adjusting your portfolio to maintain your target asset allocation (e.g., 60% stocks, 40% bonds).
As some assets outperform, your allocation drifts. Rebalancing systematically sells overweighted positions and purchases underweighted ones—implementing a disciplined approach to "buy low, sell high."
Tax-efficient rebalancing uses new contributions and retirement account adjustments when possible.
Understanding portfolio rebalancing helps you make better investment decisions and plan for taxes. Use our portfolio risk to see how it applies to your situation.
