Rebalancing 101 – How Often Should You Do It?

You’ve built your portfolio. You’re saving and investing consistently. You’ve even diversified.

But here’s the question:
When was the last time you checked your portfolio’s balance?

If you’re not sure—or you’re not even sure what “rebalancing” really means—you’re not alone.

Markets Move. So Does Your Portfolio.

Let’s say you originally decided on a 60/40 split:
60% stocks for growth, 40% bonds for stability. That’s a common balanced portfolio.

But markets don’t sit still.

If stocks have a great year, your portfolio might drift to 70/30 or even 75/25—meaning your risk is now higher than you originally intended.
And if bonds rally or stocks fall, you may be taking on less risk than you planned—slowing your long-term growth.

That’s where rebalancing comes in.

What Is Rebalancing?

Rebalancing is the process of realigning your investments to match your original (or updated) strategy.

In simple terms, it’s this:
➡️ Trim what’s grown too much.
➡️ Add to what’s lagging behind.
➡️ Stay true to your target.

It’s not glamorous.
It’s not market timing.
But it is one of the most disciplined, effective tools to manage risk and stay on course.

Why Rebalancing Matters

• Keeps your risk level where you want it
  ➤ If your stock allocation creeps too high, you may be exposed to more volatility than you’re comfortable with.
• Enforces a “buy low, sell high” habit
  ➤ Rebalancing naturally encourages you to sell high-performing assets and buy undervalued ones—without emotion.
• Aligns your investments with life changes
  ➤ Life events—retirement, inheritance, market shifts—may require a shift in strategy. Rebalancing helps adapt accordingly.

So… How Often Should You Rebalance?

There’s no one-size-fits-all, but here are some smart guidelines:

Time-Based Rebalancing

Every 6 or 12 months, review and adjust your portfolio.
Best for: Long-term investors who want to stay consistent without watching the market daily.

Threshold-Based Rebalancing

Rebalance only when a holding drifts more than 5–10% from your target.
Best for: Investors who want to be more responsive to market movements.

Hybrid Approach

Set a schedule (e.g., annually) and check thresholds. Rebalance if either applies.
Best for: Those who want both structure and flexibility.

What Not to Do

• ❌ Don’t rebalance too often—it can create unnecessary taxes and fees.
• ❌ Don’t rebalance emotionally based on news headlines.
• ❌ Don’t ignore your strategy for too long—it’s easy to drift off course.

Final Thought: It’s Not Just About Numbers

Rebalancing is a quiet, powerful way to protect your peace of mind.
It means your investments are working in alignment—not chaos.

So if it’s been a while since you checked in?
Now’s the time.

BONUS: Rebalancing Checklist – “5-Minute Portfolio Tune-Up”

Let’s review your portfolio together and make sure your plan still fits your goals.
Book your free strategy session

Staying balanced—in life and in investing,
Ashli

Investment advisory services offered through Kingsview Wealth Management, LLC (“KWM”), an SEC Registered Investment Adviser. Insurance products and services are offered and sold through Kingsview Trust and Insurance Services (“KTI”), by individually licensed and appointed insurance agents. KWM and KTI are subsidiaries of Kingsview Partners. KWM is an investment adviser registered with the Securities and Exchange Commission (“SEC”). Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.