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//// Financial · Portfolio Management

Portfolio Rebalancer

Your portfolio drifts every day. Enter your holdings and target allocations, and see exactly what to buy and sell to get back on track — including how to deploy new cash to minimize selling.

401(k) Limit 2024$23,000
Roth IRA Limit$7,000
S&P 500 Avg Return~10%/yr

Portfolio drift score

13.3pts

$67,500 current · $67,500 total

Moderate drift — consider rebalancing

Total to Buy
$4,500
3 positions
Total to Sell
$4,500
1 position
New Money
$0
fills underweights first
Trade Cost
$0
4 trades

Holdings

100.0% ✓
NameCurrent $Target %
$
%
$
%
$
%
$
%

New money to deploy (optional)

$

Current vs target allocation

Rebalancing actions
AssetCurrentTargetDriftAction
Stocks$45,000 (66.7%)$40,500 (60.0%)+6.7ppSell $4,500
Bonds$12,000 (17.8%)$13,500 (20.0%)-2.2ppBuy $1,500
International$8,000 (11.9%)$10,125 (15.0%)-3.1ppBuy $2,125
Cash$2,500 (3.7%)$3,375 (5.0%)-1.3ppBuy $875
Net · 4 trades+$4,500 · −$4,500

5% drift rule triggered

Stocks has drifted more than 5 percentage points from target.

Many advisors use a ≥5pp threshold to trigger rebalancing. Your drift score of 13.3 confirms action is warranted.

1

Current portfolio value

Σ current holding values

$45,000 + $12,000 + $8,000 + $2,500

= $67,500

2

Stocks target value

target % × total after contribution

60% × $67,500

= $40,500

3

Stocks — SELL

target value − current value

$40,500 − $45,000

= -$4,500

4

Bonds target value

target % × total after contribution

20% × $67,500

= $13,500

5

Bonds — BUY

target value − current value

$13,500 − $12,000

= +$1,500

6

International target value

target % × total after contribution

15% × $67,500

= $10,125

7

International — BUY

target value − current value

$10,125 − $8,000

= +$2,125

8

Cash target value

target % × total after contribution

5% × $67,500

= $3,375

9

Cash — BUY

target value − current value

$3,375 − $2,500

= +$875

10

Drift score

Σ |current % − target %|

|66.7% − 60.0%| + |17.8% − 20.0%| + |11.9% − 15.0%| + |3.7% − 5.0%|

= 13.3 pp

Moderate drift (13.3 pp). Consider rebalancing — many advisors trigger at 5pp per position.

Vanguard 2023 — annual rebalancing adds ~0.4% in risk-adjusted returns; 5pp threshold is industry standard

11

Tax efficiency — buy vs sell strategy

tax_preferred = new_money → underweights (avoid sells)

$4,500 buys · $4,500 sells · $0 new cash

= 1 sell · $4,500 taxable

Selling $4,500 in appreciated positions may trigger capital gains. In taxable accounts, prefer directing new contributions toward underweight positions first — it achieves the same rebalancing effect with fewer taxable events. In tax-advantaged accounts (IRA, 401k), this doesn't apply.

Vanguard / Morningstar — tax-efficient rebalancing via new contributions reduces drag by 0.2–0.5%/yr

Key insight

With a 13.3 pp drift score, you have 1 sell and 3 buys. Rebalancing now locks in relative gains and resets your risk — research shows annual rebalancing adds ~0.4% in risk-adjusted returns over the long run.

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