Portfolio Rebalancing

Portfolio rebalancing is the process of periodically reviewing and adjusting the allocation of assets in a portfolio to maintain the desired level of risk and return. This may involve selling some assets that have become a larger portion of the portfolio and buying others that have become a smaller portion, in order to bring the portfolio back in line with the original asset allocation.
One of the ways we assist clients is by offering portfolio management services, including the option for periodic rebalancing to ensure that it remains aligned with investment goals and risk tolerance. Rebalancing can help to ensure that the portfolio remains diversified and can also help to manage risk by preventing any one asset from becoming too large a portion of the portfolio. We also carefully analyze any retirement accounts, such as your 401(K) 403(b) or TSP to ensure you are in the right allocation for your risk tolerance. This will ensure all assets in your financial life are working together towards your goals.
As you get older, it may be advisable to shift to a more conservative asset allocation in your portfolio. This may involve reducing the proportion of stocks and increasing the proportion of bonds or allocating a percentage of assets to provide you with your own personal guaranteed pension. Portfolio rebalancing can help you to make this transition smoothly and efficiently, by selling off some of your stock holdings and using the proceeds to buy additional bond investments. This can help to reduce the overall risk in your portfolio and provide a more stable stream of income as you approach retirement.

Jeff Geraci

Schedule a Meeting



"*" indicates required fields

This field is for validation purposes and should be left unchanged.