Rebalancing is the act of adjusting a portfolio’s altered asset allocation to match the original allocation determined by the investor’s risk and reward profile.
There are several types of rebalancing strategies, such as calendar, permanent-mix and portfolio-insurance.
Calendar rebalancing is the least expensive, but does not respond to market fluctuations.
Constant mixing strategy is flexible, but more costly than calendar rebalancing.
Rebalancing costs may include transaction fees, unintended exposure to higher risk, and selling assets as they rise in value.
A joint tenant with inheritance rights is a legal ownership structure in which two or more parties participate in relation to an account or other asset.
The Rule of 70 is a calculation that allows you to determine how many years it will take for your money or investment to double at a given rate of return.