Rebalance with New Cash First
Directing fresh monthly savings to the asset class that suffered the biggest drop automatically buys undervalued assets on sale without triggering taxable capital gains in non-registered accounts.
Review Module 16 →
PRO TOOL
Portfolio Rebalancing & Trade Engine
Markets move, allocations drift. Calculate exact ETF purchase orders to restore your target weights using fresh monthly cash flow—eliminating unnecessary selling and capital gains taxes.
TOTAL PORTFOLIO VALUE
$100,000
Aggregate balance across all holdings entered below.
ALLOCATION STATUS
Balanced (±2%)
Maximum absolute percentage drift from your target model.
TAX ALPHA GAINED
$0 (Tax-Free)
Capital gains tax saved by rebalancing via cash flow instead of selling.
Current Holdings & Targets
Drift Analysis
| Asset Class | Current ($) | Actual % | Target % | Status |
|---|
Your Actionable Trade Orders
Log in to your brokerage (Wealthsimple, Questrade, Interactive Brokers, Fidelity, Vanguard) and execute these exact dollar orders.
Executed these orders at your broker?
Update your saved portfolio balance with this deposit and reset your drift.
Strategic Principles
Why systematic rebalancing boosts long-term returns
Rebalancing is the only counter-cyclical mechanism in investing that systematically forces you to buy low and sell high without having to predict the future.
Use 5/25 Rebalancing Bands
Do not rebalance over trivial 1% daily moves. Apply the 5/25 rule: only rebalance when an asset drifts by 5% absolute (e.g., from 40% to 45%) or 25% relative to its target weight.
Review Risk Bands →Annual Calendar Discipline
Review allocations on a fixed schedule (such as every January or after major life changes) rather than reacting to emotional market headlines and volatility.
Review Psychology →