Rebalanced your portfolio, recently? If not, unintended risks may increase
Abstract: Without rebalancing one’s portfolio it’s possible to become exposed to more risk than initially intended. This article explains the reasons to rebalance and the steps to take to do so. However, rebalancing involves buying and selling securities, which can expose an investor to capital gains tax when working within a taxable investment account. So it’s important to decide whether tax costs may outweigh the potential long-term performance benefit of rebalancing.