You have a well-diversified portfolio that is offering good returns and your retirement plans are well on track. Now what? Is that it? Sit back relax and watch your money grow?
Well, partially yes, but like anything, regular maintenance is needed to keep it functioning in tip top condition. This applies to your portfolio as well. Your financial portfolio needs regular check-ups and maintenance with your financial adviser.
Rebalancing is the process of realigning the weightings of a portfolio of assets. Rebalancing involves periodically buying or selling assets in a portfolio to maintain an original or desired level of asset allocation or risk. *
Why rebalance your portfolio?
No one can predict how the markets will perform over time.
Example: Your original asset allocation of your portfolio was 50% equities and 50% bonds with a balanced risk level. Over time, the equity portion of your portfolio has performed well, and this increase could have made the equities represent a larger percentage of your portfolio at 70%, leaving your bond portion at 30%. This puts you onto a more aggressive level of risk than you would be comfortable with. Your adviser would sell some of the equities and buy more bonds to get the percentages back to 50/50.
It is important to schedule regular meetings with your adviser to check on the performance of your investments and rebalance them. [email protected]
* https://www.investopedia.com/
Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere Acuma adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.
deVere Acuma’s Public Relations Department deals with all areas of the media and external communications including international, national, regional, local, trade, consumer, print, broadcast, social and online. The Department aims to provide a helpful service to journalists, broadcasters and editors, amongst others, and reply to all media enquiries, including urgent enquiries out of hours, within agreed deadlines. Our press office does not have access to client details and will not be able to assist with individual client enquiries. Please contact deVere Acuma’s Head of Media and Public Relations for deVere Group on [email protected] or call +971 2071220925