At Lanier Wealth Management, we believe that proactive wealth management is key to long-term success. As we move into the latter half of the year, it’s an ideal time for us to revisit your investment portfolio and make sure it remains aligned with your goals and comfort level. Two of the most important tools we use to do this are portfolio rebalancing and risk review.
What is Portfolio Rebalancing?
Portfolio rebalancing is the process we use to realign the weightings of assets in your portfolio. Over time, the performance of different investments can cause your allocation to drift from its original design. For example, if stocks have performed especially well, they may now represent a larger percentage of your portfolio than you intended—leaving you with more risk than you originally planned for.
When we rebalance, we strategically sell portions of the investments that have grown beyond their target weighting and reinvest in areas that are underrepresented. This ensures your portfolio stays true to your long-term plan and risk profile.
Why is Rebalancing Important?
Maintain Your Desired Risk Level
We help ensure that your portfolio doesn’t quietly take on more risk than you’re comfortable with. For example, a 60/40 allocation can become 70/30 after a strong stock market run. This discipline resets the balance.
Keep Discipline in Your Strategy
Rebalancing enforces a systematic, unemotional approach. It prevents reactionary investing—like chasing what’s hot or selling in a panic—and helps you stick to the strategy we’ve built together.
Take Advantage of Market Movements
By selling high and buying low, rebalancing allows you to lock in gains from well-performing assets and acquire more of those that are undervalued. We help lock in gains while positioning you for future opportunities.
How Often Do We Rebalance?
The timing of rebalancing depends on market conditions, your financial goals, and your tolerance for risk. At Lanier Wealth Management, we typically conduct semi-annual or annual reviews, but we may recommend more frequent adjustments during periods of high volatility.
Our Approach
Our process is hands-on and personalized. We use advanced tools to review your portfolio, analyze risk exposures, and recommend adjustments that support your evolving financial picture. As September and October approach, please know that this is something we are actively working on for you.
If you have questions about your portfolio or want to review your current allocation, don’t hesitate to reach out—we’re here to guide you.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.