Have you checked on your portfolio lately? According to a recent survey, 1 in 4 investors said they hardly ever look at their portfolios. And when it comes to rebalancing — a proven strategy to help investors stay on track — only 40 percent of those surveyed were proactively rebalancing their portfolios.*
It’s easy to “set it and forget it” when the market is humming along, but this could be a mistake down the road. Over time and as a result of market performance, the value of various assets within your portfolio may shift, and your investment goals and risk tolerance may change as well. Rebalancing helps ensure the investment mix in your portfolio is on target and aligned with your goals.
Rebalancing involves shifting the mix of assets in your portfolio — stocks, bonds and cash equivalents — to maintain the asset allocation that’s appropriate for you. For example, if stocks do particularly well one year, your portfolio may become more heavily weighted toward equities than you originally intended. To rebalance, you may want to sell some stock and reinvest the money in bonds or cash equivalents.
Follow these basic steps to rebalance your portfolio:
If you need help rebalancing your portfolio, contact your Client Advisor. We can help you find an appropriate asset allocation for your goals, risk tolerance and timeline.
* Source: Wells Fargo/Gallup Survey, Sept. 28, 2017.
** A systematic investment program cannot guarantee a profit or protect against loss in a declining market. You should consider your ability to continue investing during periods of low price levels.
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