Let’s Start Simple: What Is Portfolio Rebalancing?

Imagine your investment portfolio as a well-tuned sports car. To keep it running at peak performance, you need to tweak it now and then, right? That’s rebalancing. It’s the practice of bringing your investments back to their original allocation goals, protecting you from veering too far into risky territory or missing out on growth opportunities.

When you first start investing, you pick a mix of assets—maybe something like 70% stocks and 30% bonds. But over time, thanks to market ups and downs, those percentages can shift. Rebalancing helps you bring everything back to your ideal mix, so you’re always driving with a tuned-up portfolio.

In this blog, we’re going to explore why rebalancing matters and how automation makes it effortless!

Why Rebalancing Is Actually a Big Deal

So, what makes rebalancing worth your time? Let’s break down three powerful reasons:

1. Keep Your Risk Right Where You Want It

A bull market might shift your portfolio to 80% stocks and 20% bonds. More stocks mean more growth potential—awesome! But also, more risk. If that’s more risk than you’re comfy with, rebalancing gets you back to your original comfort zone.

2. Squeeze the Most Out of Your Returns

Did you know rebalancing can help boost your returns? Studies show that regularly rebalancing your portfolio is a way to “buy low and sell high”—the golden rule of investing! After a surge in stocks, you might sell a little (high) and scoop up other assets (low), positioning yourself for long-term growth.

3. Stay Cool When the Market’s Hot (or Cold)

Ever feel like the market’s a rollercoaster? Rebalancing helps you avoid making snap decisions when things get wild. Instead, you’re following a strategy, not your gut, so you stay grounded even when the market’s all over the place.

The Old Way vs. The Automated Way

Traditional rebalancing means regularly calculating each asset’s value, recalculating your target allocations, and then trading to hit those targets. Sounds exhausting, right? It also opens the door to emotionally charged decisions or poorly timed trades.

Enter Automated Rebalancing

Now, with automated platforms like Surmount, you can kick back while automation does the math and the moves. Here’s how automation takes rebalancing from complex to crazy easy:

How Automation Makes Rebalancing a No-Brainer

1. Set It and Forget It

Just set your target allocations once, and automation handles the rest. It rebalances your portfolio at regular intervals or when your asset allocation drifts by a set percentage. It’s like having a robo-pilot for your investments!

2. Keep Emotions in Check

Automated rebalancing helps you stick to a rational plan, even when the market feels like a soap opera. You’ll be buying or selling based on a strategy, not a hunch, which means you can stay cool even when things heat up.

3. Save Major Time and Hassle

Forget digging through endless spreadsheets. With automation, the tracking, recalculating, and trading are all done for you. Imagine a co-pilot who handles all the numbers while you focus on your financial goals.

4. Minimize Costs (and Maximize Gains)

Frequent trading can mean high fees, but automated rebalancing platforms often use cost-optimized strategies, rebalancing only when it really matters.

5. Get Performance Insights in a Snap

Automated platforms like Surmount offer easy-to-read metrics, letting you see exactly how rebalancing impacts your returns. You’ll feel confident knowing your strategy is working with data to back it up.

Why You’ll Want Automated Rebalancing on Your Side

The real magic of automation isn’t just about convenience; it’s about sticking to a smart strategy without the headache. Here’s what you’ll get:

• Time Savings: Rebalancing with automation gives you time back to focus on other financial goals.

• Consistency: Automation keeps you disciplined for long-term returns.

• Cost Control: Avoid those dreaded trading fees by rebalancing only when necessary.

Ready to Automate Your Rebalancing?

Surmount makes it easy to automate your rebalancing so your portfolio stays aligned with your goals—without the hassle. Set your targets, and let Surmount do the heavy lifting, keeping you on track and focused on growing wealth, not crunching numbers.

Whether you’re just dipping your toes into investing or looking to streamline, automated rebalancing is a powerful tool that makes investing smarter, simpler, and more consistent.

Final Takeaway

Rebalancing is key to keeping your investments on target, but it doesn’t have to be a chore. With automated rebalancing, you can maintain a balanced portfolio effortlessly. So, why not let technology make investing easier and more reliable? Surmount’s automated platform does the hard work for you, so you can focus on what matters: growing your wealth.

Disclaimer: The information presented is for educational purposes only and not an offer or solicitation for any specific investments. Investments involve risk and are not guaranteed. Consult with a financial adviser before making any investment decisions. Past performance does not guarantee future results.