Episode 153: Understanding the Importance of Rebalancing Your Portfolio
Description
In this episode of "The Big Picture Retirement Show," host Rick Rivera discuss the complexities and importance of rebalancing investment portfolios. Rick, a partner at Safeguard Investment Advisory Group, breaks down the concept of rebalancing to ensure that one's investments align with their risk tolerance and financial goals. He explains how market fluctuations can cause the allocation of assets to deviate from the intended strategy, potentially increasing risk. By rebalancing, investors can maintain their desired risk level and secure gains by adjusting their portfolios regularly, either quarterly or as market conditions demand.
Additionally, Rick emphasizes the significance of tax considerations in rebalancing. Different tax treatments for qualified (retirement) and non-qualified (regular) accounts necessitate strategic approaches to minimize tax liabilities while making adjustments. The duo discusses how taxes can affect the overall returns from investments and why it's essential to engage professionals who can manage these aspects proficiently.
United States
