Rebalance Your Portfolio

Whilst reading ‘No Debt Plan‘ blog I came across a good post about rebalancing your portfolio. This is something that is somewhat neglected by many. Whilst it was a good article I think that it was missing one vital point, or it wasn’t communicated as such.

Many of us split our portfolio into percentages, 80% Stock, 20% Cash and Bonds for example. The thing is, over time this percentage will change with profits and losses. You may find that your stock is doing really well but your cash and bonds are not. This may make your portfolio 90% stock and 10% cash and bonds. Clearly this is not what you set out to achieve.

Therefore, inline with No Debt Plan, make August ‘rebalance your portfolio’ month. If your stock is doing better than the rest sell some and rebalance your portfolio. Don’t forget if it has been a while since you rebalanced your portfolio you may want to adjust your percentages inline with your current age and level of risk.

• Goals & Debt

• Outstanding Debts & How Much is Payed
  
  Total Student Debt: £17,836.70
  £1700
  
  
  
  Net Worth Goal: £1,000,000
  £36,579.08