How Often Should You Rebalance Your Portfolio?
// SUMMARY:
How often should you rebalance your portfolio? To put it simply annually is fine and the evidence says that anything more frequent is probably unnecessary and seems to have no objective benefit That is you can log in to your account once a year to rebalance Think of rebalancing like an oil change for your car For retirees with something like a traditional IRA which has required distributions you could make your annual withdrawal and rebalance at the same time If you happen to use a broker that still charges transaction fees you'd probably want to limit your rebalancing frequency to no more than once per year Also pay attention to any fees for mutual funds like load fees Note that in a taxable account you should try to avoid selling positions with capital gains as that will be a taxable event at the time of sale Instead ideally simply buy enough of the underweight asset to rebalance the portfolio A broker like M1 finance does this automatically by directing new deposits to the underweight asset
#investingforbeginners #investingfordummies #investing101
// INVEST
► M1 Finance: https://optimizedportfolio.com/go/m1
► My comprehensive review of M1 Finance: https://www.optimizedportfolio.com/m1...
► Get my dividend portfolio: https://www.optimizedportfolio.com/m1...
► Lazy Portfolios: https://www.optimizedportfolio.com/la...
► Beginners’ reference guide (updated regularly): https://www.optimizedportfolio.com/be...
► Webull (for stock traders; get 2 free stocks): https://act.webull.com/kol-us/share.h...
// SOCIAL
► Website: https://www.optimizedportfolio.com/
► Patreon: / optimizedportfolio
► Facebook: / optimizedportfolio
► Instagram: / optimizedportfolio
► Twitter: / optimizedport
► Support my channel by shopping on Amazon (free for you): https://amzn.to/2TLCgCc
I appreciate all the support!
Disclaimer: This is not financial advice, investing advice, or tax advice. The information presented is for informational, educational, and entertainment purposes only. Investment products discussed are for illustrative purposes only. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. I always attempt to ensure the accuracy of information presented but that accuracy cannot be guaranteed. Do your own due diligence. All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future results. Opinions are my own and do not represent those of other parties mentioned. Read my lengthier disclaimer here: https://www.optimizedportfolio.com/te...
Disclosure: Some of the links above are referral links. At no additional cost to you, if you choose to make a purchase or sign up for a service after clicking through those links, I may receive a small commission. This allows me to continue producing high-quality content on this channel and pays for the occasional cup of coffee. I have first-hand experience with every product or service I recommend, and I recommend them because I genuinely believe they are useful.
Watch video How Often Should You Rebalance Your Portfolio? online without registration, duration hours minute second in high quality. This video was added by user Optimized Portfolio 27 February 2024, don't forget to share it with your friends and acquaintances, it has been viewed on our site 769 once and liked it 26 people.