Portfolio Rebalancing: Drift, Bands, Cash-Flow & Tax-Aware Rebalancing
Weights and drift, trades back to target, calendar vs never, 5/25 tolerance bands, rebalancing with new cash only, trading costs, FIFO vs HIFO lots and the rebalancing bonus: 8 hands-on labs with illustrative returns. Educational only, not investment advice.
The first lesson is free — no account needed.
About this course
A portfolio rebalancing course that keeps one investor's five-asset portfolio on target in a spreadsheet, for DIY investors, financial planning students and adviser assistants who want to see the mechanics. You grow Maya's portfolio through a year of returns and measure each asset's drift from its target weight, turn the drift into buy and sell amounts, whole units and turnover, run a 60/40 portfolio through ten years with and without yearly rebalancing, set absolute and relative tolerance bands with the 5/25 rule and colour the assets outside them, steer $30,000 of new money into the underweight assets without selling, skip trades too small to be worth their fee and spread, pick tax lots with FIFO and HIFO and measure the tax saved, and test the rebalancing bonus of two volatile funds with CAGR, drawdown and volatility. Illustrative returns, educational only, not investment or tax advice. The first lab is free.
Lessons
- Weights & Drift after a Year of ReturnsFree
- Trades Needed to Return to Target Pro
- Calendar Rebalancing vs Never Rebalancing over 10 Years Pro
- Tolerance Bands: Absolute, Relative & the 5/25 Rule Pro
- Rebalancing with New Contributions Only (No Sells) Pro
- Transaction Costs & Minimum Trade Size Pro
- Tax-Aware Rebalancing: Realised Gains, FIFO vs HIFO Pro
- Rebalancing Bonus, Volatility Pumping & Risk Pro