How Often Should You Rebalance Your Portfolio?

By Allen Krewzz

Published July 4, 2026Updated July 4, 2026

How Often Should You Rebalance Your Portfolio?

Why Portfolios Drift From Their Target

The Calendar-Based Approach

The Threshold-Based Approach

Either approach is reasonable — consistency matters most: There's no single correct answer between calendar-based and threshold-based rebalancing. What matters far more is picking one method and actually sticking with it, rather than rebalancing reactively based on emotion or market headlines.

Rebalancing Has Tax and Cost Implications

How Often Should You Rebalance Your Portfolio?

Why Portfolios Drift From Their Target

The Calendar-Based Approach

The Threshold-Based Approach

Rebalancing Has Tax and Cost Implications

Set a Reminder So It Actually Happens

Key Takeaways

Frequently Asked Questions

Is it bad to rebalance too often?

Can I rebalance without selling anything?

Do retirement accounts have different rebalancing considerations?

Conclusion

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