What Exactly Is Portfolio Rebalancing?

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 wealth 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 an absolute minimum, and one of the great pros 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-advisor 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 will always keep fees as low as possible, allowing you to see even more of your returns.

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