505 Introduction to Rebalancing Your Fund Portfolio
Rebalancing your portfolio is like exercise -- not only would you rather not do it, but when you do, it will keep some parts from becoming lopsided. Rebalance periodically to make sure your portfolio is doing what you set it up to do. That's the gist of this short course.
What you will learn
- Why Rebalance Your Fund Portfolio?
- Rebalancing Principles for Your Fund Portfolio
What do you know?
Introduction to Rebalancing Your Fund Portfolio
So you've built a portfolio that perfectly matches your needs. If only you could kick back and ignore it until retirement. In order to keep your portfolio in shape, you have to monitor it on a regular basis. You'll want to reevaluate all of your funds and make sure that you don't have a reason to sell any of them. You'll also want to make sure that your asset allocation hasn't become lopsided—and if it has, you'll want to rebalance your holdings. In this lesson, we'll examine why rebalancing matters and offer our suggestions for how and when you should rebalance your portfolio.
