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Online Brokerage Services: Rebalancing your portfolio

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Uploaded by on May 5, 2008

In your portfolio's case...it basically means shifting assets...more of this, less of that, getting rid of investments that don't fit.When do you "rebalance"? The usual major life events: Marriage, Divorce, New Kid, New Job, Looming Retirement. Or say you wanted 30% of your portfolio in bonds...but market performance turned that 30% into 50% of your portfolio. You realign your holdings to restore the balance you want. Don't do it...and you could have a riskier portfolio than you ever wanted...OR...one that's slow to produce returns.

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