How to set your target asset allocation and rebalance your portfolio efficiently

#58: How to set your target asset allocation can feel like a mystery. How do you do it rigorously? How do you know what’s optimal?

Rebalancing can also feel like a chore. Where do you start? How do you make sure you’re doing it rigorously and tax-efficiently?

This week, I show you how to set your target asset allocation tailored to your investment and risk profile. I share how to track your allocation over time and analyze drift from your target allocation. And I explain how to tax-efficiently rebalance back to your target allocation step-by-step.

If asset allocation and portfolio rebalancing feels like a mystery, chore, or headache, then don’t miss this episode because it will teach you how to do it rigorously and with no guesswork.

What you’ll learn:

• Why it’s prudent to sell your winning investments and rebalance toward your underdogs
• How to create and define your target asset allocation starting from first principles
• How to determine your investment style and risk tolerance in an intellectually honest way
• How to track your current allocation and analyze drift from your target
• How to rebalance your portfolio tax-efficiently step-by-step
• How often you should rebalance

If you really learn the principles taught in today’s episode, you’ll be able to rebalance your portfolio and ensure your asset allocation stays closely aligned with your investment goals (yielding higher returns and lower risk).

…And you can do it in 1 hour or less per year.

Check it out here:

https://hackyourwealth.com/asset-allocation-rebalance-portfolio

What is YOUR target asset allocation? How often do you rebalance? Any rebalancing strategies you use that I didn’t cover? What questions do you have about asset allocation and rebalancing? Let me know by leaving a comment!

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Links mentioned in this episode:

• Download my FREE spreadsheet to track your current vs. target asset allocation
• My 4×4 FIRE framework for creating and protecting wealth (HYW002)
• HYW private Facebook community

 Intro/Outro: Old Bossa by Twin Musicom.