🧠 Want to rebalance your portfolio without triggering a tax nightmare?
Here’s the smart order to follow:
1️⃣ Start with your 401(k) and IRA: You can rebalance freely, with no tax hit
2️⃣ Use new contributions wisely: Direct them into assets that have dropped, instead of selling anything
3️⃣ Only as a last resort, sell in taxable accounts (and use tax-loss harvesting to soften the blow)
The goal?
✅ Stay on track
✅ Keep more of your money
✅ Avoid paying more taxes than you need to
Rebalancing isn’t just about risk. It’s also about efficiency.
