How Rebalancing Adds Half a Percent to Your Returns

A well-rebalanced portfolio doesn't just reduce risk — it actually boosts long-term returns by about half a percent annually. In this episode, Lucas explains the math behind rebalancing using a concrete 60/40 stock-bond portfolio that drifts to 70/30 during a bull market. Luna pushes back on whether rebalancing is worth the effort for passive investors, and Lucas walks through both the 'why' and the 'how' — including tax-efficient rebalancing strategies, bands vs. calendar methods, and the surprising behavioral benefit: forced selling of winners keeps you from getting greedy. By the end, you'll have a practical framework for checking your own asset allocation at least once a year. This is episode 140 of Wealth Building with Fexingo. #Rebalancing #PortfolioManagement #AssetAllocation #Finance #Investing #Retirement #LongTermInvesting #WealthBuilding #FexingoBusiness #BusinessPodcast #LucasAndLuna #BehavioralFinance #TaxStrategy #PassiveInvesting #RiskManagement #CompoundGrowth #InvestmentStrategy #PersonalFinance Keep every episode free: buymeacoffee.com/fexingo