How often should my advisor rebalance my portfolio?

The frequency at which your advisor rebalances your portfolio will depend on several factors that are specific to you, such as your investment goals, your risk tolerance, and the current market conditions. However, as a general guideline, many financial advisors suggest rebalancing your portfolio at least once a year.

Rebalancing your portfolio involves adjusting the allocation of your investments to realign your holdings to the desired asset allocation. For example, if you have a 60/40 allocation of stocks to bonds, and the stock market has performed well, your portfolio may now have a 70/30 allocation. Rebalancing in this case will involve selling some of your stocks and buying more bonds to bring your portfolio back to the 60/40 allocation.

If you have a more aggressive investment strategy or if market conditions are particularly volatile your advisor may rebalance more frequently.  Frequent rebalancing may result in higher transaction costs or taxes.

Ultimately, it’s important to work with your financial advisor to determine the best rebalancing strategy for your specific investment goals and risk tolerance.


The information in this article is a compilation pulled from a variety of sources which may include AI contributions.  The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.


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