Clever Girl Finance

CHAPTER 10Keeping Your Investmentson Target

Rebalancing your portfolio allows you to pause, assess, and simplify.

#CLEVERGIRLSKNOW

As you invest your money over time and work on achieving your financial goals, you'll need to monitor your portfolio and rebalance it as necessary. Rebalancing your portfolio is all about checking in on your investments periodically to ensure your asset allocations are in line with your objectives and you are comfortable with the performance of your investments. It's important to keep in mind that rebalancing your portfolio should be part of your long-term investing strategy. Investing requires patience and as you practice patience over the long term, you might find your portfolio going through short-term swings and declines that periodic rebalancing can help you minimize.

My friend, Nicole Hatcher of frugalchiclife.com, has an excellent take on why patience is key:

Patience is one of the most important skills to home in on during your investing journey. As female investors, we face unique wealth-building challenges such as the gender pay gap and missed time in the workforce due to childrearing, which can limit our ability to accumulate wealth. Being patient will ensure that we aren't jumping in and out of the market and missing out on opportunities for long-term growth. As an added benefit, being patient and staying the course helps us build investing confidence. It may sound cliché, but it's true: slow-and-steady wins the race.

As you consider ...