Sometimes, your investment portfolio needs a course correction to stay safe and on track with your personal allocation strategy. We tackle the essential, yet often ignored, financial tune-up known as rebalancing. Learn exactly what rebalancing is, why this simple process is about managing risk (not chasing returns), and the practical steps to implement it, including smart tax strategies for your 401(k) and brokerage accounts.
Andrew joins this week’s podcast as we talk about:
– The definition of “rebalancing”
– Our personal approach to target asset allocation, and if we rebalance
– Why rebalancing is crucial for managing risk, not maximizing profit
– The difference between setting your strategy vs. execution plan
– A practical, 3-step guide for checking and adjusting your portfolio
-The strategy of using new contributions or dividends to rebalance and avoid selling
– The importance of prioritizing rebalancing in tax-advantaged accounts
– When rebalancing triggers taxable events and when it doesn’t
Show References:
- Inside Out Money podcast #058 – Breaking up with your financial planner – Why and how to do it
- Inside Out Money podcast #076 – Investing terms you should know – ETFs vs. mutual funds, target date funds, expense ratios, dividends, market vs. limit orders, and more!
- Inside Out Money episode #003 – How and why to invest in index funds
- Inside Out Money episode #039 – What’s in our wallet? Our index funds, accounts, and more!
Follow and connect with Inside Out Money:
- Subscribe to Substack
- YouTube
- Leave us a voicemail or text us: 404-981-3370
- eMail us at: insideoutmoneypod@gmail.com