Godmind Knowledge House
Re-balancing your Portfolio !
| Investment is an on going process, it is very dynamic in nature. As the value of your investments increases or decreases, or your life changes, you may want to modify your initial asset allocation. In fact, there are several situations when you may like to rebalance your portfolio. |
|
Why rebalance? |
| Asset allocation isn’t something you need to worry about every day. On the other hand, it isn’t something you can do just once and forget about until retirement. |
| As the value of your investments increases or decreases, or your life changes, you’ll probably want to modify your initial asset allocation, or bring your actual portfolio in line with the one you intend to own. Godmind advisors will help you maintain a profitable portfolio over time. |
| As you get closer to retirement, you may want to shift some of your assets out of potentially volatile growth investments, such as share capital, into income-producing investments with more stable values. |
| You may want to rebalance your allocation in response to major life events that have an impact on your financial situation, such as getting married or divorced, having children, or changing jobs. |
| If market performance increases or decreases the value of one asset class so that your actual portfolio allocation is significantly different from the allocation you selected, you may want to realign your holdings to get them back in balance. |
| Many financial advisers suggest you review and rebalance your portfolio once a year. Others say that you can ignore imbalances unless the value of any class exceeds the allocation you originally selected by 15% or more. |
|
Assets grow at different rates. Over time, the ones that grow more quickly will make up a greater percentage of your portfolio than you originally planned
|
