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In your portfolio’s case…it basically means shifting assets…more of this, less of that, getting rid of investments that don’t fit.When do you “rebalance”? The usual major life events: Marriage, Divorce, New Kid, New Job, Looming Retirement. Or say you wanted 30% of your portfolio in bonds…but market performance turned that 30% into 50% of your portfolio. You realign your holdings to restore the balance you want. Don’t do it…and you could have a riskier portfolio than you ever wanted…OR…one that’s slow to produce returns.
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