Rebalancing 101
Reset risk to target with simple calendar or threshold rules—no forecasting required.
Why Rebalance
Markets move your allocation. Rebalancing sells a little of recent winners and buys recent laggards to restore target risk.
Calendar vs Threshold
Calendar: once per year. Threshold: when allocation drifts 5–10 percentage points. Either works—pick one and stay consistent.
Practical Tips
- Use new contributions to reduce trades
- Prefer low-cost, broad ETFs
- Trade with limit orders mid-session