The theme this week on the One Minute Retirement Tip podcast is: how to rebalance your investment portfolio. 

So far this week, I’ve focused on manually rebalancing your portfolio - determining your target allocation and rebalancing when things get too far out of line. By the way, if you want to know the target allocations that I recommend as a starting point based on your age, just send me an email - [email protected] and I will send you my age-based asset allocation cheat sheet. 

But what if there’s an easier way - what if you didn’t have to fuss with rebalancing your portfolio? Well the good news is, especially if you have a 401k, you can set up automatic rebalancing on your portfolio. 

If you own target date or a portfolio model (like an aggressive, moderate, or conservative model) - the rebalancing is done for you. Even if you prefer to customize your portfolio, you can still set up automatic rebalancing. My 401k plan is customized with a handful of different options. I have the auto-rebalance set up to rebalance quarterly. Most plans allow for this, and there is no guarantee that it will improve your returns, but it will ensure that your portfolio risk stays in check, and there’s strong evidence that it's likely to enhance returns over long periods of time. So I encourage you to utilize automatic rebalancing when it’s available to you, especially in retirement accounts where there are no taxes for rebalancing. 

That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance