Portfolio Rebalancing

Rebalancing is often called one of investing's "free lunches" because it can help reduce risk and improve portfolio discipline without requiring investors to take on additional risk. In this article, Associate Financial Advisor Clay Reynolds explains the differences between calendar and threshold rebalancing, why both approaches matter, and how a hybrid strategy may help investors stay aligned with their long-term financial objectives.

What does “Portfolio Rebalancing” mean? There are many terms used in the finance world. You may have heard your financial advisor or...

Over time, the investments in a portfolio may shift, creating imbalances and potentially increasing risk.