Portfolio Rebalancing: Age-Based Strategies

Rebalancing in your 20s looks very different than it does in your 60s.

The Accumulation Phase (20s-40s)

You can be more aggressive and let your equity winners 'run' a bit more before rebalancing to fix your allocation.

The Preservation Phase (50s-60s)

Rebalancing becomes more about protecting your wins and ensuring you don't have too much risk right before retirement.

Using New Contributions

The most tax-efficient way to rebalance is to use your new monthly investment money to buy 'underweight' assets rather than selling 'overweight' ones.