Here Is The Most Easy To Use Portfolio Rebalance Tool

Get a simple, easy to use portfolio rebalance tool. It will help maximize your returns and lower your risk. It’s all FREE!

Rebalancing is essential because your portfolio will drift out of its asset allocation over time. Using a rebalance tool makes sure that your portfolio stays within the desired asset allocation.

The video below explains in a little more detail what rebalancing means.

Here Is The Most Easy To Use Portfolio Rebalance Tool

There are many advantages to rebalancing regularly:

  • It automates your investment decisions, making your immune to biases that might otherwise hurt you.
  • Rebalancing sells assets that have gone up in value and buys assets that have gone down in value. This is precisely what you want to happen. Buy low and sell high.
  • It lowers the risk of your portfolio.
  • Rebalancing could net you more money.

The only two disadvantages to rebalancing your portfolio are:

  1. It cost a little bit of money in commissions to make the trades to bring balance to the portfolio. This is negligible in comparison to the value rebalancing provides. Many brokers also offer free-of-charge trades on many mutual funds and ETFs.
  2.  It takes a little bit of time – it may be an hour or two every year.

With Portfolio Einstein’s rebalancing tool you can hopefully cut down on the time it takes 🙂

There can be tax consequences when you rebalance especially if you sell an asset class in order to buy another, so have that in mind.

To avoid a possible tax event consider instead to buy more of the asset classes that have decreased in value. That way you don’t have to sell any assets but you can still reach your required target allocation.

Consider your total portfolio allocation across accounts. You could hold only stocks in one account and only bonds in another account. You decide what makes sense to but seeing all your assets as one investment portfolio could save you transaction fees and taxes. It could also help you with establishing a correct asset location (placing asset classes where it makes the most sense tax-wise).

Get it here:

Google Sheets: Rebalancing Tool

Make sure you make a copy of it to your drive. Select “File > Make a copy” from the upper left corner.

Excel:  Portfolio Einstein Rebalancing Tool

investment-Rebalancing-tool
Picture of how the tool looks like

 

Here’s another video that explains in a little more detail what rebalancing means.

Your next steps

Rebalancing is vital to any portfolio. With Portfolio Einstein’s Rebalancing Tool, it gets a little easier. The rebalancing tool is just one of many tools available here on Portfolioeinstein.com. Sign up for our newsletter to get more great timesaving tools!

Be sure to leave a comment if you have anything to add!

2 thoughts on “Here Is The Most Easy To Use Portfolio Rebalance Tool”

  1. Really good spreadsheet… I’ve been using my own Excel design for years! I like your colors and error checking better. I did modify yours with two more columns: 1. Current Value and 2. Current Quantity then changed your value column to the multiple of those two new columns. Works the same yet gives me a look at what the history pricing was next time I re-balance.
    Also, I’ve been using the following system for years and it has served me very well… http://www.7twelveportfolio.com/
    Thanks again for your free spreadsheet!

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