This toolkit turns an annual portfolio review into a checklist: confirm your goals and time horizon, measure your current allocation against your target, and calculate how far you have drifted.
Next, check the costs: expense ratios, trading fees, and cash drag from uninvested balances. Then review your tax situation, including any tax-loss harvesting opportunities and high-cost holdings in the wrong account type.
Finally, set a rebalancing plan, either calendar-based or threshold-based, and schedule the next checkup. Consistency beats intensity.
Key takeaways
- Review goals, allocation drift, and costs yearly
- Check taxes and high-cost holdings in the wrong accounts
- Set a rebalancing schedule and stick to it
