Q: What is portfolio rebalancing, and why does it matter?
A: As markets move, your investment mix drifts. Rebalancing brings it back in line—so your portfolio continues supporting the goals in your financial plan.
Q: How often should I rebalance my portfolio?
A: For most long-term investors, twice a year is a good checkpoint—or anytime allocations shift more than 5–10% from target. It’s about staying aligned with the plan, not chasing performance.
Q: What happens if I don’t rebalance?
A: You may take on more risk—or less opportunity—than your plan calls for. That misalignment can quietly derail progress, especially in volatile markets or pre-retirement years.
Q: Is this only important for retirees?
A: No. Whether you’re building wealth or drawing from it, staying within your plan’s risk range helps you move forward with more confidence and fewer surprises.
Q: Doesn’t rebalancing hurt returns?
A: It may feel counterintuitive, but disciplined rebalancing helps protect gains and reduce risk—key ingredients for helping your plan succeed over time.
It’s not about timing the market. It’s about honoring the plan.
Your portfolio is the engine behind your goals—keep it tuned.
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*Content is for informational purposes only. Neither the information nor any opinion expressed in this content constitutes an offer by Cottonwood Wealth Strategies to buy or sell any securities or financial instruments, or to provide any investment advice or service.