37 minutes | Nov 24th 2020

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

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#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 underdogsHow to create and define your target asset allocation starting from first principlesHow to determine your investment style and risk tolerance in an intellectually honest wayHow to track your current allocation and analyze drift from your targetHow to rebalance your portfolio tax-efficiently step-by-stepHow often you should rebalanceIf 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-portfolioWhat 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!Don't miss an episode, hit that subscribe button...If you liked this episode, be sure to subscribe so you don’t miss any upcoming episodes!Apple PodcastsOvercastSpotifyStitcherI need your help, please leave a listener review :)If you liked this episode, would you please leave a quick review on Apple Podcasts? It’d mean the world to me and your review also helps others find my podcast, too!Links mentioned in this episode:Download my FREE spreadsheet to track your current vs. target asset allocationMy 4×4 FIRE framework for creating and protecting wealth (HYW002)HYW private Facebook community Intro/Outro: Old Bossa by Twin Musicom.
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