Portfolio rebalancing - is it part of your investment strategy? It should be, and here's why:
Rebalancing is the practice of realigning the weights of a portfolio's assets. It ensures your portfolio stays aligned with your investment goals and risk tolerance, even as different investments increase or decrease in value.
Evidence supports its benefits: A study from Vanguard found that portfolios using rebalancing strategies had less volatility and risk-adjusted returns were potentially enhanced by up to 0.47% annually over a 10-year period.
Think of rebalancing like a tune-up for your investments. It's about making sure everything's working as it should, performing efficiently, and reducing the chances of unexpected breakdowns. It's a key tactic in managing investment risk and enhancing return potential over time.
So, here's a crucial question: Does your existing portfolio rebalance? If you're not sure, or if the answer is no, it may be time to reassess your strategy.
At Fortress Financial Planning, we're ready to help you fine-tune your portfolio and secure your financial future. Let's start today. 📩
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