Rebalancing Isn’t Just About Stocks: Why Total Wealth Rebalancing Matters
Most people think of rebalancing as something you do with your investment portfolio—tweaking your mix of stocks and bonds to stay on target. That’s important, sure. But if you stop there, you’re missing the bigger picture. Your finances are more than your investment account. Rebalancing your total wealth means checking every part of your financial life to ensure it aligns with your goals. And that can make a much more significant difference than just shifting a few percentages in your portfolio.
Look Beyond the Portfolio
Rebalancing your wealth means reviewing all the areas that affect your financial health, not just your stocks and bonds. That includes things like:
- Cash Reserves: Are you holding too much cash in low-interest accounts? Or not enough to cover short-term needs?
- Debt: Is your debt structured in the most efficient way? Could you benefit from refinancing or consolidating?
- Insurance: Do your insurance policies still match your life stage and responsibilities?
- Tax Strategy: Have you reviewed tax planning opportunities based on current income, deductions, or investment decisions?
- Business Interests or Real Estate: If you own a business or property, is its role in your overall plan still effective?
Each of these pieces can shift over time. Life changes, markets move, and your goals evolve. Total wealth rebalancing is about stepping back to assess everything and making thoughtful adjustments.
Why It Matters
When one area of your finances becomes out of sync, it can impact everything else. For example, if you’ve had a significant life change—a new job, a move, an inheritance—your plan needs to reflect that. Even without significant events, your wealth can drift away from your goals due to time or market performance.
Think of total wealth rebalancing as a regular tune-up. It helps you:
- Stay aligned with your priorities by ensuring your plan reflects what matters most to you.
- Reduce unnecessary risks by reviewing outdated decisions or overlooked exposures.
- Maximize opportunities by taking advantage of changes in tax law, interest rates, or your financial position.
It’s not about perfection. It’s about intention. Total wealth rebalancing isn’t just a financial to-do list—it’s a way to keep your entire strategy working for you.
Keep the Big Picture in Focus
At Worth Advisors, real wealth management means looking at every piece of your financial life, not just your investments. Let’s chat if it’s been a while since you looked at the whole picture. We’ll help you step back, review, and rebalance so your strategy fits where you are today and where you want to go tomorrow.
