Why Your Rebalancing Frequency Matters More Than You Think

Failed to add items

Sorry, we are unable to add the item because your shopping cart is already at capacity.

Add to basket failed.

Please try again later

Add to wishlist failed.

Please try again later

Remove from wishlist failed.

Please try again later

Adding to library failed

Please try again

Follow podcast failed

Unfollow podcast failed

Why Your Rebalancing Frequency Matters More Than You Think

Listen for free

View show details

Most investors set their portfolio rebalancing on autopilot once a year. But research from the Journal of Financial Planning shows that rebalancing quarterly instead of annually can boost long-term returns by as much as 0.35 percent per year, while also reducing portfolio volatility. In this episode, Lucas and Luna unpack the specific thresholds that trigger optimal rebalancing, using the example of a 60/40 stock-bond portfolio during the 2022 bear market. They explain why time-based rebalancing often lags behind threshold-based strategies, and how a simple 5 percent deviation band can help investors stay disciplined without overtrading. The hosts also discuss behavioral pitfalls like anchoring and loss aversion that make rebalancing emotionally difficult, and offer a practical framework for setting your own rebalancing rules based on your personal risk tolerance and tax situation. #Rebalancing #PortfolioManagement #AssetAllocation #InvestmentStrategy #LongTermInvesting #WealthBuilding #Finance #PersonalFinance #Investing #RiskManagement #BehavioralFinance #LossAversion #AnchoringBias #TaxEfficientInvesting #CompoundGrowth #FexingoBusiness #BusinessPodcast #WealthBuildingWithFexingo Keep every episode free: buymeacoffee.com/fexingo

No reviews yet