What Exactly Is Portfolio Rebalancing?

Balance is everything in this life, and whether it’s in your career, relationships, or the time we spend doing the things we love, it’s an important factor to achieve consistently. Portfolio rebalancing is equally important when it comes to your wealth, and it mainly involves moving your money between your investments. Why? To achieve a perfect balance, which can then help you reach your financial goals and aspirations.

Here at Wealthface, we value the fact that all of our investors are different and unique. Some people have a high tolerance for risk and others are more cautious. Some are looking to buy a home and others are saving for the future. Young or old, settled, or thrill-seeking… we all have our own unique needs and hopes for our wealth.

Our wealth management system takes all of these sorts of factors into account at every step of the process, and use this information to decide where best to put the client’s money – something known as asset allocation. However, asset allocation isn’t the kind of thing that is done once then forgotten about; it requires constant upkeep and maintenance to ensure the best results. That is the essence of portfolio rebalancing.

Wealthface believes that portfolio rebalancing should be something which occurs regularly throughout an investor’s life – it should evolve as they do, and grow with their changing needs. Sometimes, it needs to happen to make sure your original goals are still being catered. Other times, we need to rebalance your portfolio to help you meet new goals that have arisen. As investors get older, they tend to become more conservative and less tolerant to risk. In essence we’ll keep this in mind, too, and ensure that our systems are in place to maximize your returns and minimize risks even further consistently.

What are the Benefits of Portfolio Rebalancing?

We know our clients like to 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. We are dedicated to ensuring that the algorithms we use are capable of keeping risk low and returns high.

Time after time, we manage the wealth of our clients to provide total satisfaction and help them achieve their financial goals stress-free. Wealthface is about providing financial solutions one click away, allowing wealth to grow at the push of a button.

Another benefit of our portfolio rebalancing system is that it removes the emotional element of investing, something which can lead to investors making the wrong choices. For example, sometimes it can be challenging 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 getting in the way of growing your wealth and 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

Portfolio rebalancing does have a few faults, as with most elements of investing. 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 also. For example, for those with smaller portfolios, the cost of 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 also 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.

Wealthface: Lower Risk and Greater Returns at the Click of a Mouse