Game of Jenga with man contemplating how to rebalance his portfolio

When and How to Rebalance Your Portfolio


Written by John Rothans

Jun 6, 2019

You can plan for some things in life, like getting married or having a baby. But what about the things you can’t plan for, like the rising threat of the U.S. dollar’s demise as the world reserve’s currency? Or, the digital lending crisis?

While you can’t do much to halt these occurrences, you can do a lot to guard yourself against them in case of a major life event. Here, we’ll educate you about several life events that might trigger a rebalancing of your portfolio and how you might tackle it.

When Should You Rebalance Your Portfolio?

Major life events can prompt a reassessment of your portfolio. Here are six of these events.


Getting married means embarking on a new life together. And that’s coupled with various financial considerations.

In a 2017 survey by TD Ameritrade, 37 percent of Americans reported paying more attention to their finances after getting married. Yet that attention isn’t always positive. In the survey, 44 percent of married Americans said they’d argued about money in the past year.

So, once you’re hitched, you might want to say “I do” to a portfolio rebalancing as part of your financial vows to avoid potential issues in the future.

Separation or Divorce

The title of a 1975 song by Neil Sedaka puts it best: Breakin’ up is hard to do.

Not only does separation or divorce take an emotional toll, but it also can take a financial toll. After all, a couple’s finances become intertwined once they exchange vows. Not surprisingly, money matters are the second leading cause of divorce, according to a 2018 survey commissioned by Ramsey Solutions.

A separation or divorce could be the right occasion to rebalance your portfolio.

New Job

Starting a new job is much like starting a new school year. There are new people to get to know and new things to learn.

When beginning a new job, it’s important to review your finances—including your portfolio—to see where everything stands. Doing so will give you a fresh look at your financial picture.

Job Loss

Losing a job also sparks a lot of financial reflection. How deep or shallow is my emergency fund? What expenses should I cut? What, if anything, should I change in my portfolio? Without a regular paycheck and employer-matched retirement contributions, you’ll want to take a serious second look at your financial future. Retirement might be further away than you had planned.

New Baby

Bringing a new life into the world is exhilarating and even a little scary. Part of this emotional roller coaster involves all of the expenses connected to the care and feeding of your baby. Before the baby arrives, you should figure out what financial adjustments you might need to make, such as taking out a life insurance policy or rebalancing your portfolio.

Death of a Loved One

The death of a loved one brings a tremendous amount of grief. It also leads to a host of other issues, including a re-examination of your finances and possible rebalancing of your portfolio. This is particularly true if the loved one was a spouse who contributed income to your relationship or a parent from whom you inherited money.

How Should You Rebalance Your Portfolio?

It’s one thing to take a deep dive into your portfolio when you’re faced with a major life event. But it’s another thing to determine whether rebalancing is needed and how to do it.

A big consideration when weighing the rebalancing of your portfolio is the current asset mix. One key question to ask: Do I need to shift my current allocation of precious metals?

Experts recommend allocating anywhere from 10 percent to 25 percent of your portfolio toward tangible assets like gold and other precious metals. Your individual allocation toward gold will depend on how much protection your portfolio requires. In other words, 25 percent might be the best precious metal allocation for you, while 10 percent might be best for someone else.

A sample portfolio might include stock and other equities (25%), cash (20%), precious metals (20%), fixed-income (15%), property (10%), and other (10%). Keep in mind, though, that this is just an example of how you might rebalance your portfolio.

Whatever percentage you decide on, it’s worth noting that the global economic outlook has never been more uncertain, making the case for owning gold stronger than ever.

Here are three advantages of owning gold:

  • Gold is an essential portfolio protection strategy that provides long-term diversification, which is the number one factor in developing your approach to asset allocation.
  • Gold is the ultimate insurance policy, especially during financial slumps.
  • Gold has outperformed major asset classes over time.

In the end, including gold and other precious metals in a rebalanced portfolio can help you weather future global events—as well as future life events.

Markets change. So do your priorities. Consider regularly rebalancing your portfolio to match both. Call U.S. Money Reserve at 1-844-307-1589 to get started today.


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