Week 47 Day 2: Calendar vs. Threshold Rebalancing: Two Approaches

There are two main approaches to rebalancing. Calendar rebalancing means you check and adjust on a fixed schedule -- quarterly, semi-annually, or annually. Threshold rebalancing means you act only whe...

There are two main approaches to rebalancing. Calendar rebalancing means you check and adjust on a fixed schedule -- quarterly, semi-annually, or annually. Threshold rebalancing means you act only when an allocation drifts beyond a set band, like 5% from target. Both work. The best method is the one you will actually do.