Why and How to Rebalance Your Investment Portfolio

Over time, some assets grow faster than others, changing the risk profile of your portfolio.

Controlling Risk

If stocks have a great year, you might end up with more equity exposure than you intended. Rebalancing brings it back to your target.

Buy Low, Sell High

Rebalancing forces you to sell some of what has gone up and buy more of what has gone down—a proven successful strategy.

When to Rebalance

Consider doing it once a year or whenever your allocation drifts by more than 5% from your target.