Should You Rebalance Quarterly? Why Calendar-Based Rebalancing Might Cost You Returns

How often should you rebalance your investment portfolio? If you Google this question, you'll find the standard answer: quarterly or annually. But what if that advice doesn't fit YOUR situation? In this episode, father-daughter advisor team Bill and Anastasia Taber tackle the rebalancing debate: Questions answered:  ✓ What is portfolio rebalancing and why does it matter?  ✓ Why do passive investors rebalance on a calendar schedule?  ✓ What does academic research say about rebalancing benefits?  ✓ When should you break the quarterly rebalancing rule?  ✓ How do taxes change your rebalancing strategy?  ✓ Should you rebalance differently in your 401(k) vs. taxable account?  ✓ What's the difference between rebalancing for passive vs. active investors? The surprising truth: Without rebalancing, a 60/40 portfolio can drift to 80%+ stocks, creating way more risk than you intended. But rigid calendar-based rebalancing isn't the only solution. And for some investors, it's not even the best one. Anastasia (CERTIFIED FINANCIAL PLANNER™) and Bill (40+ years managing client money) explain why they don't follow conventional rebalancing advice, share real examples of when calendar rebalancing hurts returns, and reveal the tax implications many investors miss. Your takeaway: A clear framework for deciding how often YOU should rebalance based on your investment style, tax situation, and time horizon. Perfect for DIY investors, those working with advisors, or anyone trying to build a smarter investment strategy. Subscribe for behavioral finance insights and practical financial tips. New episodes every other Friday.