Rebalancing your portfolio requires realigning the weightings of a portfolio, which involves the buying and selling of assets in a portfolio to maintain a desired level of asset allocation.
At Wealthface portfolio rebalancing occurs on a quarterly basis. The rebalancing date is at the end of March, the end of June, at the end of September and at the end of December of each financial year.
How does Rebalancing work?
At Wealthface, we continuously rebalance your portfolio using automated technology to ensure that your portfolio is consistent with your financial goal. Here is where we provide portfolio management services.
At Wealthface we rebalance your portfolio on a quarterly basis. The rebalancing date is at the end of March, the end of June, at the end of September and at the end of December of each financial year. Except if your portfolio’s weights differ from your plan weights by more than 30%, we will rebalance your portfolio by the next business day. Wealthface's concern is always to protect the client's capital.
Automatic rebalancing is a free service for All Weathface Clients.
With our dividend reinvestment plan, we automatically reinvest dividend income in the ETFs that are underweight based on your plan.
Wealthface rebalances your portfolio without any trading costs (free of charges) or any trade size requirement and also, supports Fractional Shares.
For example, a threshold of 20% (the passage from one level to another) means that if your plan weight is 20% in US stocks, a rebalance will be triggered if the actual weight is above 26% or below 14%.
Why is portfolio rebalancing important?
Portfolio rebalancing is important when it comes to your wealth. It helps you achieve a perfect balance, enabling you to reach your financial goals.
Here at WealthFace, we value the fact that all of our investors are different and unique. Some people have a high tolerance for risk; others are more cautious. Some are looking to buy a home; others are saving for the future.
Young or old, settled or thrill-seeking, our investment portfolio management system will take all of these factors into account at every step of the process, and use this information to decide where best to invest your money – this is called asset allocation.
It is initially set up with the client’s goals in mind but requires regular upkeep and maintenance to ensure the best possible results. That is the essence of portfolio rebalancing.
WealthFace believes that portfolio rebalancing should be something that occurs regularly throughout an investor’s life – it should evolve, as investors do, and grow with their changing needs.
Sometimes, it needs to happen to make sure your original goals are still being catered for. Other times, we need to rebalance your portfolio to help meet new goals that arise.
As investors get older, they tend to become more conservative and risk-averse: we ensure that our systems are in place to maximize your returns and minimize risks at every turn consistently.
What are the Benefits of Portfolio Rebalancing?
We manage our clients’ wealth to provide total satisfaction and help them achieve their financial goals stress-free.
We know our clients like to keep risk to an absolute minimum, and one of the great benefits of portfolio rebalancing is that it allows this to happen with ease. We strive to provide a top-tier portfolio rebalancing service for our clients and are dedicated to ensuring that the algorithms we use to minimize risk and increase returns.
Another benefit of our portfolio rebalancing system is that it removes the emotional element of investing, which can lead to investors making the wrong choices. For example, sometimes it can be difficult to sell a portfolio that’s on the rise, even if this is objectively the right thing to do.
On the flip side, falling portfolios can make buying seem daunting, too.Predetermined times for buying and selling remove the possibility of letting your misplaced hunches or emotional attachments get in the way of growing your wealth.
Our clients have seen the positive results of this for themselves. In conclusion, it’s fair to say that portfolio rebalancing makes ‘emotionless’ investing easy… and we know what a great difference that can make.
Factors to Bear In Mind
As with most investing elements, portfolio rebalancing has a few faults; some investors hate doing calculations and spending time with spreadsheets adjusting balances… it certainly can suck the fun out of watching your wealth grow.
Luckily, Wealthface has everything in place to do all of this for you, and make things as easy as you need it to be.
Putting your wealth management in the hands of Wealthface’s experts and robo-advisors removes many of the other negatives of portfolio rebalancing. For example, for those with smaller portfolios, buying and selling every year can quickly add up and eat away at your returns.
If the degree of variation from your allocation target is small, it’s fair to say that portfolio rebalancing may not be worth the effort or cost.
Luckily, with Wealthface, such issues become things of the past – we guarantee that our approach, with the help of our portfolio advisor, will always keep fees as low as possible, allowing you to see even more of your returns.
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