Rebalancing Made Simple (When, How, and What Not to Do)
Rebalancing means bringing portfolio back to your target percentages.
When to rebalance
- Usually once per year is enough for most beginners
- Or when allocation drifts by a clear threshold (e.g., 5%)
How to rebalance smart
- Use new contributions first
- Avoid unnecessary selling/trading costs
- Stay close to target, not perfect to decimal
What not to do
- Do not rebalance every week
- Do not chase winners emotionally
Educational content only. Not financial advice.