100 best money moves you can make

Our annual guide to the best stocks and funds, credit cards, career moves, retirement strategies, and much more.

4 of 63
7. Best strategy for rebalancing
7. Best strategy for rebalancing
To maintain your target asset allocation, you know you should periodically sell some of what's become overweight in your portfolio and buy what's underweight. Most people use the calendar approach -- rebalancing every January, for example. But if the markets are moving significantly (and you're a hands-on investor), you're better off using the trigger-point approach, says Seth Masters, a chief investment officer at AllianceBernstein.

Anytime the percentage of an asset in your portfolio rises, say, five percentage points above your target, rebalance. That way if the market makes any more quick and crazy moves, you won't be waiting for months to get your portfolio back the way you want it.

NEXT: 8-10. Best way to stop shredding your money
Email | Print | Share
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
Last updated May 12 2010: 10:39 AM ET
21 best money tips ever Some of the nation's leading business owners, investors, and thinkers share their thoughts on rebuilding your wealth. More
The 20 best money Web sitesThese sites have tools you can trust to help you make better money decisions. More
4 great iPhone apps Most of the best handheld money apps are still iPhone-only. More
Special Offer

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.