Weekend Reading: When *Not* To Rebalance?

This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
Weekend reading when not to rebalance portfolio Weekend reading when not to rebalance portfolio
Weekend Reading

Rebalancing your portfolio – buying and selling to maintain your desired risk level – is a common investment practice. But how you decide when to do that matters!


There are two main approaches.

Key Points:

  • The "bottoms-up, bucket" method means adjusting your investments to ensure you have enough safe assets to cover your planned spending timelines
  • "Expected risk/return" focuses on maintaining a percentage-based mix of stocks and bonds that aligns with your overall risk tolerance
  • Choose the method that lets you stay confidently invested, knowing your plan aligns with your financial goals and comfort level

Why It Matters: Rebalancing helps you tailor your investments to your unique needs and comfort level, maximizing the chance of reaching your financial goals while minimizing unnecessary stress.