There are problems with simply selling your excess asset types. You may not want to sell an asset held in a taxable account because selling it can trigger a taxable event, which is usually undesirable. Here are the 3 steps I usually take to rebalance my portfolio.
Rebalancing is an integral part of your asset allocation management. Because assets within your portfolio grow at a different rate, the portfolio as a whole needs to be rebalanced periodically to maintain its risk exposure and its growth potential.
In part 1 of this post I talked about the “rule of thumb” I follow when I design a portfolio. Here are some portfolio suggestions …
Are you building up an investment portfolio on your own? Here are four major considerations before building a portfolio.