The Importance of Rebalancing

Thursday, April 2, 2020 1,218 views

With the recent market volatility, Mark Hebner explains the importance of rebalancing your portfolio.

DISCLOSURES:

The scenario used in this video is provided for illustrative purposes only, it does not represent the actual performance of any client portfolio or account and it should not be interpreted as an indication of such past or future performance. 

For HYPOTHETICAL back-tested performance data shown in this chart, see ifabt.com. IFA Index Portfolios are labeled with numbers that refer to the percentage of stock indexes in the asset allocation, as opposed to the allocation of bond indexes. For example, an IFA Index Portfolio 50 is 50% IFA stock indexes and 50% IFA bond indexes. For more, go to indexdescriptions.com. The HYPOTHETICAL back-tested performance of the IFA Index Portfolios was achieved with the benefit of hindsight; it does not represent actual investment strategies for the entire period; and it does not reflect the impact that economic and market factors may have had on the advisor's decision making if the advisor were actually managing client money during the period shown. The performance of index portfolios does reflect the maximum annual advisory fee of 0.9%. IFA Index Portfolios do reflect the deduction of mutual fund fees, include reinvestment of dividends, capital gains, and includes the deduction of IFA advisory fees, but does not include transaction costs or taxes, which if included, would lower performance. The IFA Index Portfolios were created by IFA in 2000. Performance figures may contain both live and HYPOTHETICAL back-tested data. All data, including performance data, is provided for illustrative purposes only, it does not represent actual performance of any client portfolio or account and it should not be interpreted as an indication of such performance. IFA utilizes "standard deviation" as a quantification of risk, see the definition of "standard deviation" in the IFA glossary.

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