We Recently Rebalanced Your Account.

We are monitoring your accounts so you don’t have to!

One of our responsibilities is to continually monitor and proactively manage your portfolio. As such, we recently rebalanced one or more of your accounts. You should receive confirmation of these trades from via email or regular mail. 

Below you will find the five types of rebalancing we traditionally do for accounts, please reach out to your advisor if you’d like any clarification or if you have questions!

Rebalance Type #1: Full Account

Full Account rebalance entails adjusting all of the positions back to their original intended targets. This type of rebalancing is typically needed in periods of high market volatility or at the initial implementation of setting up your account. When done, all investments are in perfect alignment.

Rebalance Type #2: Min-Max Rebalance

A Min-Max rebalance is used to evaluate the positions that are the greatest out of tolerance. By identifying just a few positions and focusing on those, it reduces the amount of trades needed to bring the account back into tolerance, which can reduce tax ramification and trading costs.

Rebalance Type #3: Excess Cash

Investments in your account can pay dividends or income. And sometimes additional cash can deposited in your account via monthly contributions or consolidation of accounts. When this happens, cash begins to accumulate or become too great in your account. When the designated amount of cash exceeds a certain threshold assigned to your account, we perform this type of rebalancing to put some of that cash to work.

Rebalance Type #4: Raise Cash

Maintaining an appropriate amount of cash in your account is a critical component to managing your account. It allows us to buy additional investments at opportune times and send you money when needed. Each account is assigned a targeted amount of cash. If that cash level falls too far below the intended target based on your unique needs and goals, this type of rebalancing is designed to bring your cash reserves back to the target we’ve set for your account.

Rebalance Type #5: Tax Loss

Periodically, we look for opportunities to reduce your tax liabilty while keeping your account aligned with your long-term goals. This type of rebalancing applies to taxable accounts and involves identifying and tracking the gain and loss of each position. Where appropriate, we will use losses to offset taxable gains while maintaining IRS regulations on the “wash-sale” rule. Saving you taxes and time!

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