Rebalancing Made Simple (When, How, and What Not to Do)

Rebalancing means bringing portfolio back to your target percentages.

When to rebalance

• Usually once per year is enough for most beginners
• Or when allocation drifts by a clear threshold (e.g., 5%)

How to rebalance smart

• Use new contributions first
• Avoid unnecessary selling/trading costs
• Stay close to target, not perfect to decimal

What not to do

• Do not rebalance every week
• Do not chase winners emotionally

Educational content only. Not financial advice.