#84: Today's episode is about an important end-of-year planning topic: asset allocation and portfolio rebalancing.
Many otherwise smart investors set their portfolio once, but then fail to rigorously monitor their asset allocation and rebalance regularly.
Whether due to inertia or hassle, this inaction is costly. It results in lower returns and greater risk as your asset allocation drifts…bad for wealth-building.
How do you set your target asset allocation optimally and rigorously? And how do you rebalance tax-efficiently?
This week, I show you how to set your target asset allocation to match your risk profile and investment goals. I share how to track your asset allocation to see how much it has drifted from your target allocation. And I explain step-by-step how to tax-efficiently rebalance.
If asset allocation and rebalancing feel like a mystery or chore, then don’t miss today’s episode. I’ll show you how to do it systematically, efficiently, and rigorously…all in 1 hour or less per year.
What you’ll learn:
- Why it’s prudent to sell your winning investments and rebalance toward your underdogs
- How to create and define your target asset allocation starting from first principles
- How to determine your investment style and risk tolerance in an intellectually honest way
- How to track your current allocation and analyze drift from your target
- How to rebalance your portfolio tax-efficiently step-by-step
- How often you should rebalance
Check it out here:
https://hackyourwealth.com/asset-allocation-rebalance-portfolio-replay
How often do you rebalance your portfolio? Let me know by leaving a comment!
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Links mentioned in this episode:
- Download my FREE spreadsheet to track your current vs. target asset allocation
- My 4×4 FIRE framework for creating and protecting wealth (HYW002)
- Schedule a private 1:1 consultation with me
- HYW private Facebook community
Intro/Outro: Old Bossa by Twin Musicom.
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