How to rebalance your portfolio

Rebalancing asset allocations

May 8, 2009

Very few private investors give much thought to asset allocation, even though it’s far more important than picking stocks or funds in determining your investment returns. Even worse, those who do set up a nicely diversified portfolio often forget all about their ideal asset mix once they’ve made their initial decisions! This is foolish, and [...]

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How to rebalance your portfolio

May 14, 2009

I have previously discussed why rebalancing your portfolio is a good idea. In short, by reducing or adding to your holdings in different asset classes, you can smooth your returns and keep risk within a level you can tolerate. How do you actually do it? Well, rebalancing is definitely an art more than a science. [...]

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When should you rebalance your portfolio?

May 15, 2009

Once you’ve committed to rebalancing your portfolio to maintain your chosen asset allocation, you need to decide when you’ll do the deed. As usual, I’m definitely not going to give you a precise plan on how often you should rebalance. I think there’s no perfect answer, and you need to decide for yourself. That said, [...]

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Factors that may influence how and when you rebalance

May 19, 2009

When deciding how often to rebalance your portfolio, you’ll need to consider several factors, including: The kinds of assets you hold The cost of trading such assets Tax issues The free time you have available Your personal judgement How often you can be bothered to do it I’m serious about that last point, incidentally.

Getting older? Admit it when you rebalance your portfolio

May 26, 2009

Whether you rebalance your portfolio once a month, year or decade, there’s something else to keep in mind: You’re not getting any younger! I know this is painful stuff. It’s bad enough remembering your mortality when shopping for jeans or racing your kids around the park. But the fact is our ideal asset allocation may [...]

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Rebalance your portfolio for your benefit, not the tax man’s

January 29, 2010

Assuming you’re not investing for the Government’s benefit, you need to keep an eye on tax when rebalancing your portfolio.

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The simplest way to rebalance your portfolio

March 22, 2011

Calendar rebalancing is the simplest way to rebalance and ensures that your portfolio doesn’t get bloated with risk. But how frequently should you do it?

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