Blog/Investing

Portfolio Rebalancing: When, Why, and How to Do It

FinWise Editorial TeamMarch 9, 20267 min read

Table of Contents

โ†’How Often
โ†’Taxes
โ†’Conclusion

Markets moveโ€”your 60/40 can become 75/25 after a bull run. Rebalancing sells high, buys low.


How Often


Annual or when any asset drifts 5%+ from target.


Taxes


Rebalance in tax-advantaged accounts first to limit capital gains.


Conclusion


Write your policy down and follow itโ€”removes emotion.

rebalancingasset allocationportfoliorisk

Related Calculators