Stacy Francis Quoted by Her Money: When Should You Rebalance Your Portfolio?
WHEN SHOULD YOU REBALANCE YOUR PORTFOLIO?
Stacy Francis, President and CEO of Francis Financial was recently quoted by Her Money on the topic of rebalancing your portfolio.
Short answer? Twice a year, Francis says, citing Vanguard guidance. Checking in on a regular 6-month schedule — treating it as you would a dental cleaning, for example — is ideal. Set your calendar to do it every January and every July. (And if you haven’t checked in on your portfolio in a while, now’s the time.)
“This is important,” Francis says, “because it takes out the market timing and it creates a systematic program where you go in, you review your investments, and you rebalance back to that risk asset allocation you set out to have.” Investors who do this are the ones who outperform over time, she says.