Many experts suggest that you should consider rebalancing if the funds in your portfolio have strayed more than 5% to 10% from your original allocation, as illustrated in the pie charts above.
It’s a good idea to review your asset allocation at least once a year. Many investors choose an easy date to remember — such as birthdays or New Year’s — as their annual portfolio checkup date. If the markets are changing significantly, you may want to rebalance quarterly.
Before you rebalance, ask yourself if your investment objectives, time horizon or personal circumstances have changed substantially. Your investment mix should always accurately reflect your current needs, goals and plans.