Manage Your Portfolio
Rebalance Your Portfolio
You initially allocated your portfolio among different types of investments-stocks, bonds and money markets-to reduce overall risk in your portfolio. But over time, the percentages you've allocated to each type of investment may have shifted due to market ups and downs, leaving your portfolio looking much different than your original plan.
Rebalancing gets your portfolio back to your desired percentage mix. This simply means that you'll need to buy and sell investments to bring your portfolio back in line with your asset allocation plan (see below). This ensures your portfolio maintains the balance of risk and return you've determined is right for your goals.
If you don't have the time or don't feel comfortable doing the rebalancing yourself, we offer asset allocation portfolios. When you choose one of our time- or risk-based portfolios, our professional investment managers rebalance the underlying funds regularly so you don't have to.
For example, you may have decided to invest 60% of your portfolio in stocks, 30% in bonds and 10% in money market securities.
Out of Balance
If market activity causes the value of the stock portion of your portfolio to increase significantly, you'll have a greater percentage of your portfolio invested in stocks than you intended.
Rebalancing-buying more bonds and money markets and selling stocks-gets your portfolio back to your desired 60/30/10 percentage mix.