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The Power of Rebalancing Your Portfolio

The Power of Rebalancing Your Portfolio

| December 20, 2016

Investing is a lifestyle. It’s a way of thinking and planning for the future.  For some, it’s a hobby and a thrill. For others, it can seem like a daunting task, but an overall good idea for financial growth.  No matter where you would categorize yourself, there is always wisdom in seeking help from a professional financial planner to help you get started or to take a second look at what kind of investments you currently hold. Analyzing and rebalancing your portfolio over the years gives you more power and control over the growth of your money.



A financial portfolio contains three categories: stocks, bonds and cash.  Each of these plays a different role to help you save and grow your money over time.  Though they each have their own role, they all work together to make up a complete and healthy financial profile.  In order to keep up with the current trends in investing and market changes, you will want to use a financial planner to help guide you and keep you informed about what the best ways are for you to grow your wealth.


How It Works

When you are making an investment and building a financial portfolio you basically divide up your total investment into the three categories listed above (stocks, bonds and cash).  Your financial planner or wealth manager will advise you in how to assign a percentage of your investment towards each of those categories.  Since there are different levels of risks involved with stocks, bonds and cash it is not likely that they will have be dispersed evenly among the three areas.


Reaching Goals

In order to reach any goal in life, you need to have a good strategy.  Working with your financial planner to develop an investment strategy that is aimed at your final target is going to be the way to hit the bulls eye. Rebalancing your portfolio helps to re-calibrate your money growth for the future.  Reallocating your resources over time will give you a higher chance of making more money in the future.  Investment goals are not reached in the short-term, but in the long term.  Having a 20+ year investment strategy is the ideal if you want to see the greatest growth from your original investment.


Reduces Risk

Though the future is never guaranteed, reducing risks can give you better odds of getting the most out of your investment.  As each category grows over time, you will want to work with your financial planner to help re-calibrate the percentages allotted to your stocks, bonds and cash. Doing this helps to minimize risk and can help keep your investment in your pocket.




Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. GPS Wealth Management and Securities America are separate companies. Securities America and its representatives do not provide tax or legal advice; therefore it is important to coordinate with your tax or legal advisor regarding your specific situation.  The opinions and forecasts expressed are those of the author, and may not actually come to pass. This information is subject to change at any time, based on market and other conditions and should not be construed as a recommendation of any specific security or investment plan. Past performance does not guarantee future results.