The Benefits of Rebalancing Your Investment Portfolio Asset Strategy

As you approach retirement, it’s crucial to rebalance your investment portfolio to manage risk and maximize return potential. Rebalancing ensures that your investments are aligned with your financial goals and risk tolerance and helps you achieve a confident retirement.

Investment Risk Management

One of the most significant benefits of rebalancing is that it allows you to manage risk. As you age, you may not have the time to recover from market downturns. If your portfolio is too heavily weighted towards stocks, you may be exposed to more significant losses if the stock market crashes. Rebalancing allows you to adjust your investments to ensure that you have a more balanced mix of stocks, bonds, and other assets that reflect your current risk tolerance.

Aligning Your Portfolio with Your Financial Goals

Rebalancing is also important because it ensures that your investments align with your financial goals. As you approach retirement, your investment objectives may change. For example, you may shift from a focus on growth to a focus on income generation. Rebalancing allows you to adjust your portfolio to reflect these changes, ensuring that your investments are working towards achieving your financial objectives.

Part of a Tax Management Strategy

Rebalancing can also help you minimize taxes. By selling high-performing investments in a tax-advantaged account, such as an IRA (Individual Retirement Account) or 401(k), you can avoid capital gains taxes. This strategy helps you keep more of your investment returns and ensures that you have more money to fund your retirement.

It’s important to note that rebalancing does not mean that you should make drastic changes to your investment portfolio. Instead, rebalancing should be a gradual process that takes place over time. Small adjustments to your portfolio may help you achieve your investment objectives without taking on unnecessary risk.

Rebalancing is an essential part of retirement planning. It helps you manage risk, helps maximize return potential, aligns your investments with your financial goals, and helps minimize taxes. As you approach retirement, it’s important to review your investment portfolio regularly and adjust to ensure that your investments reflect your current financial objectives and risk tolerance. With proper rebalancing, you can have financial confidence.



Because investor situations and objectives vary this information is not intended to indicate suitability for any individual investor.

This is for informational purposes only, does not represent legal or tax advice does not indicate suitability for any particular investor, and does not constitute an offer to purchase or sell investments. Please consult the appropriate professional regarding your individual circumstance.

There are retirement account risks that could diminish investor returns, such as, but not limited to: low interest rates, market volatility, withdrawal timing and sequence of returns risk, government policy uncertainty and increased longevity. Prospective investors should perform their own due diligence carefully and review the “Risk Factors” section of any prospectus, private placement memorandum or offering circular before considering any investment.

Advisory services are offered through Asset Strategy Advisors, LLC (ASA). Securities are offered through representatives licensed with either Concorde Investment Services, LLC (CIS), member FINRA/SIPC, or RCX Capital Group, LLC (RCX), member FINRA. Insurance is offered through Asset Strategy Financial Group, Inc. (ASFG). ASFG and ASA are independent of CIS and RCX.

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