Many investors choose a target asset allocation, but market fluctuations can shift your portfolio’s mix. Rebalancing involves selling high-performing assets to balance out underperforming ones, maintaining discipline and risk. Check and adjust your portfolio’s stock/bond mix and international exposure. Consider tax implications when rebalancing, focusing on overall risk and return profiles.

To rebalance your portfolio, sell high-performing assets to balance out underperforming ones. Check stock/bond mix, international exposure, and specialized asset allocations. Focus on tax-efficient adjustments within tax-deferred accounts like IRAs or 401(k)s. Offset realized capital gains in taxable accounts by selling assets with unrealized losses. Consider opportunities for tax-loss harvesting in categories like India equity, real estate, consumer defensive, and health care.

Read more at Yahoo Finance: How to Rebalance Your Portfolio in a Lofty Market