Connect with us

Personal Finance

Rebalance your portfolio after years of market gains: top advisor

Published

9 months ago

on

Pekic | E+ | Getty Images

[CK bullet with numbers.]

The stock market’s impressive run in recent years may be fattening your portfolio, but it also might have thrown your intended investment mix off balance.

While artificial intelligence stock valuations spurred a market decline on Tuesday, the major indexes are still well up this year, propelled both by AI-related and big technology stocks. Through Tuesday’s close, the S&P index is up about 15.1%. Both the Dow and the Nasdaq have also posted double-digit gains for the year of roughly 10.6% and 20.9%, respectively.

Those jumps come on the heels of outsized returns in 2023 and 2024. In fact, the S&P has surged by about 90% since mid-October 2022. The Dow’s gain in that time is about 61% and the Nasdaq, roughly 126%. Some experts view the market as overpriced — meaning they expect a correction at some point.

More from CNBC’s Financial Advisor 100:

Here’s a look at more coverage of CNBC’s Financial Advisor 100 list of top financial advisory firms for 2025:

Financial advisors say if you haven’t recently rebalanced your portfolio, now is the time. Rebalancing restores your intended asset allocation — that is, how you divvy up your portfolio among stocks, bonds and other assets.

Investors “should look at their risk exposure and review the purpose of the money and then sell down riskier areas of their portfolio,” said James Armstrong, president of Henry H. Armstrong Associates in Pittsburgh, which is ranked No. 14 on CNBC’s Financial Advisor 100 list for this year.

“They could have too much in equities and not enough in safe assets,” Armstrong said.

Don’t let FOMO lead to ‘a dangerous posture’

Say you built a portfolio with 60% stocks and 40% bonds. If you were never to rebalance, significant stock market returns could lead to that ratio standing at more like 90:10 over time — a portfolio based mostly on stocks, which come with more volatility and risk.

“I’ve been surprised by how many people are afraid to cut back their equity exposure because they’re afraid of missing out on upward gains, and that’s a dangerous posture,” Armstrong said.

Chevy Chase makes CNBC's Financial Advisor 100 list

Basically, if you are in retirement or near it, you don’t have the time to recover from a prolonged down market the way retirement savers in their 20s or 30s do.

“I wouldn’t let fear of missing out blind me to the possibility [of] a bear market,” he said. “I’d want to have some money in a safe place.”

Armstrong also said it’s important to think about how a 20% or 30% drop in the value of your portfolio would affect your life or your future.

“If it will matter, the time to take action is now while prices are high,” Armstrong said. “Take some money off the table and put it in a safe place.”

How rebalancing benefits investors

Advisors say you should have a rebalancing strategy and stick to it.

“Rebalancing takes the emotion out of it. It puts the client in a position where they have a systematic approach,” said Benjamin Offit, a certified financial planner based in Columbia, Maryland, and a senior wealth advisor and partner for Composition Wealth of Los Angeles. “That enables them to unemotionally sell high and buy low.”

Rebalancing also lets you profit off gains from outperforming investments while paying lower prices for underperforming ones.

Remember that if you sell stocks you hold in a taxable account, any gains on assets held for one year or less are subject to regular income tax rates. Profits on assets held longer than a year are considered long-term gains and face tax rates of 0%, 15% or 20%, depending on your income. 

If you can stick to a rebalancing strategy, it helps with tax planning, Offit said. If you rebalance before your positions drift too far from their target, you won’t incur a huge capital gain, he said.

In contrast, allowing massive runups over time in a particular position can make it harder to sell due to high embedded capital gains, which can mean a large tax bill, he said. 

Many financial advisors recommend rebalancing your portfolio at least once a year, if not more often.

“I think a couple times a year or maybe more, look at your risk exposure and review what the goal is for the money,” Armstrong said.

Related Topics:
Continue Reading

Personal Finance

$20,000 Caution Bond Requirement for US Visa Applications imposed on 50 Countries

Published

6 days ago

on

August 8, 2026

By

The United States Department of State has officially implemented a revised visa policy introducing a mandatory posting requirement for caution payments of up to $20,000 on select foreign travel applications. Under the updated regulatory framework, consular officials are authorized to require temporary nonimmigrant visa applicants from targeted foreign countries to post a refundable financial bond of $20,000 as a condition for visa issuance. The policy mechanism is designed to address diplomatic concerns regarding high overstay rates among temporary visitor, business, and educational visa categories.

The caution bond pilot program applies selectively to foreign nationals from designated countries whose diplomatic entities record historical visa overstay rates exceeding established federal thresholds. Under administrative guidelines published by the State Department, the full financial deposit is posted directly to a dedicated federal escrow account prior to final visa issuance. The entire caution payment is automatically refunded to the applicant upon verified proof of timely departure from the United States in strict compliance with the authorized duration of stay. Conversely, failure to depart within the legal timeframe results in full forfeiture of the posted financial bond to the United States government.

Diplomatic representatives and travel policy experts have expressed varying perspectives regarding the operational implementation of the caution bond system. Administration officials emphasize that the measure serves as an effective, market-based incentive to enforce international travel compliance and preserve domestic immigration security standards. However, international trade organizations and foreign diplomatic missions have raised concerns regarding the financial burden imposed on legitimate business travelers, foreign students, and commercial partners from developing nations.

The United States finalized the rule to make the temporary visa bond program permanent, taking effect on August 3, 2026. The updated permanent regulation replaces the prior 12-month pilot, eliminates the lowest $5,000 tier, and raises the maximum required bond amount to $20,000 for specific B-1/B-2 business and tourist visa applicants.

Here is the list of the 50 countries on the list as o August 3, 2026

African Nations (31 Countries)

  • Algeria
  • Angola
  • Benin
  • Botswana
  • Burundi
  • Cabo Verde (Cape Verde)
  • Central African Republic
  • Côte d’Ivoire (Ivory Coast)
  • Djibouti
  • Ethiopia
  • Gabon
  • The Gambia
  • Ghana
  • Guinea
  • Guinea-Bissau
  • Lesotho
  • Malawi
  • Mauritania
  • Mauritius
  • Mozambique
  • Namibia
  • Nigeria
  • São Tomé and Príncipe
  • Senegal
  • Seychelles
  • Tanzania
  • Togo
  • Tunisia
  • Uganda
  • Zambia
  • Zimbabwe

Asian & Eastern European Nations (11 Countries)

  • Bangladesh
  • Bhutan
  • Cambodia
  • Georgia
  • Kyrgyzstan
  • Mongolia
  • Nepal
  • Papua New Guinea
  • Tajikistan
  • Turkmenistan
  • Uzbekistan

Caribbean & Latin American Nations (5 Countries)

  • Antigua and Barbuda
  • Cuba
  • Dominica
  • Grenada
  • Venezuela

Oceanian Nations (3 Countries)

  • Fiji
  • Tonga
  • Vanuatu

Continue Reading

Personal Finance

Next-Generation Retirement Planning: Managing Longevity Risk and Variable Income Streams

Published

1 week ago

on

August 7, 2026

By

Retirement planning strategies are evolving in 2026 to address increased life expectancies, shifting dynamic market conditions, and the transition away from traditional defined-benefit pensions. Individual investors and financial advisors are abandoning rigid retirement models in favor of flexible, multi-asset strategies designed to mitigate longevity risk and preserve purchasing power over multi-decade retirement horizons.

Mitigating Longevity Risk with Dynamic Asset Allocation
As average life expectancies extend past eighty-five years, one of the primary financial risks facing retirees is outliving their accumulated wealth. Traditional fixed income allocations—such as the standard 60/40 equity-to-bond portfolio—are being reevaluated to ensure portfolios generate sufficient capital growth alongside reliable income.

Financial planners recommend maintaining a meaningful equity allocation throughout retirement to offset long-term inflation erosion. High-dividend equity funds, global real estate investment trusts (REITs), and inflation-indexed Treasuries are combined to create diversified portfolios that deliver both growth and income stability.

The Transition to Dynamic Withdrawal Strategies
The classic “4% safe withdrawal rule” is increasingly replaced by dynamic withdrawal strategies that adapt annually based on market performance. Under a dynamic withdrawal framework, retirees adjust their annual distribution rates within pre-set caps and floors:
– Market Upside: During strong market returns, retirees can increase discretionary spending or fund family legacy gifts.
– Market Downturns: During market pullbacks, spending distributions are temporarily reduced to prevent sequence-of-returns risk and preserve core investment principal.

Guaranteed Lifetime Income Options and Deferred Annuities
To establish a guaranteed baseline for essential living expenses, individuals are incorporating modern fixed-indexed and deferred longevity annuities into their broader retirement architectures. Modern annuity structures offer competitive return caps, transparent fee schedules, and inflation-adjustment options.

By funding essential expenses—such as housing, healthcare, and insurance—with guaranteed income streams from Social Security, pensions, and annuities, retirees can manage discretionary investment portfolios with greater flexibility and lower emotional stress during market volatility.

Actionable Steps for Future Retirees
1. Calculate Baseline Retirement Expenses: Determine fixed living costs and map guaranteed income sources to cover essential expenditures.
2. Adopt Flexible Withdrawal Rules: Implement dynamic spending rules to protect investment principal against market downturns.
3. Incorporate Inflation-Protected Assets: Maintain exposure to dividend-growing equities and inflation-indexed bonds to safeguard long-term purchasing power.

Continue Reading

Personal Finance

Building Generational Wealth: Family Governance, Estate Tax Optimization, and Asset Protection

Published

2 weeks ago

on

August 1, 2026

By

As the largest intergenerational transfer of wealth in history accelerates, high-net-worth families, entrepreneurs, and individual investors are placing heightened emphasis on comprehensive estate planning, family governance, and asset protection. Preserving capital across generations requires a balanced approach combining tax-efficient legal structures with open family communication and financial literacy education.

Optimizing Estate Tax Exemptions and Trust Structures
With potential modifications to federal estate tax exemption thresholds on the horizon, proactive estate planning is essential for high-net-worth households. Estate planning attorneys and wealth advisors are establishing multi-generational trust structures to transfer wealth efficiently while minimizing estate and gift tax exposure.

Popular structural strategies include:
– Irrevocable Life Insurance Trusts (ILITs): Utilizing life insurance proceeds to provide liquidity for estate tax obligations without expanding the taxable estate.
– Grantor Retained Annuity Trusts (GRATs): Transferring rapidly appreciating assets to beneficiaries with minimal gift tax consequences.
– Dynasty Trusts: Preserving wealth across multiple generations while providing long-term asset protection from creditor claims and legal liabilities.

Establishing Family Governance and Financial Education
Legal and financial structures alone cannot guarantee long-term wealth preservation without effective family governance. Financial advisors report that a significant percentage of multi-generational wealth dissipation stems from lack of communication and inadequate financial preparation among heir generations.

Families are establishing formal family governance frameworks, including periodic family meetings, written mission statements, and structured philanthropic foundations. Involving younger family members in charitable grant-making and investment discussions fosters financial stewardship and prepares heirs to manage family assets responsibly.

Digital Asset Custody and Legacy Planning
In today’s modern economy, estate planning must extend beyond physical real estate and traditional brokerage accounts to encompass digital assets. Comprehensive estate plans now include detailed inventories and legal access protocols for corporate domain names, intellectual property, digital media rights, and cryptocurrency holdings.

Fiduciaries and estate executors should be provided with secure, encrypted access mechanisms and clear legal authority to manage and transfer digital holdings in accordance with the owner’s estate directions.

Practical Steps for Legacy Planning
1. Review and Update Estate Documents: Ensure wills, revocable trusts, and power-of-attorney designations accurately reflect current family structures.
2. Establish Structured Trusts: Utilize irrevocable trusts to protect assets from creditors and minimize future estate tax liabilities.
3. Create a Digital Estate Inventory: Document access protocols and legal permissions for all online accounts, intellectual property, and digital assets.

Continue Reading

Trending