Is Your Portfolio Working as Hard as You Are?

Wealth isn’t built by accident.

As an investor, each financial decision you’ve made was part of a thoughtful, strategic approach to growing and preserving your assets. Yet even the most carefully constructed portfolio can drift over time. Market volatility, evolving tax laws, and life changes have a way of subtly reshaping your investment strategy—often without notice.

That’s why it’s important to check in on your portfolio to make sure it still reflects your goals. A timely review—and a bit of rebalancing—can help keep everything aligned, ensuring your investment strategy continues to support the secure future you’ve worked so hard to build.

Perform a Comprehensive Portfolio Review

The first step in evaluating whether your investments are still on track is to take a detailed look at your current portfolio. For individual investors, this process should go beyond basic asset allocation and return performance.

A proper review should assess:

• Asset allocation drift: Over time, changes in market value can shift your original asset allocation. For example, a portfolio that was once 60% equities and 40% fixed income could easily become 70/30 after a strong stock market run, increasing your exposure to risk. It may also be relevant to assess how the value of real estate holdings and businesses impacts your overall portfolio value.
• Concentration risk: Evaluate whether your portfolio has become too heavily weighted in a single sector, geographic region, or security. This is especially common for investors who hold large positions in company stock or private equity.
• Tax efficiency: Consider how your investments are structured from a tax perspective. Investors should pay close attention to opportunities and strategies that minimize unnecessary tax burdens and help preserve more of their returns.

Revisit Your Investment Objectives and Time Horizon

Your goals evolve over time—and so should your portfolio. Whether you're preparing for retirement, planning a large philanthropic gift, looking to sell property or a business, or structuring generational wealth transfer, your investment strategy should align with your personal and financial objectives.

These questions can help ensure your strategy stays in line with your goals:

• Have your financial goals changed?
• Are you approaching a major liquidity event, such as the sale of property or a business?
• Has your risk tolerance shifted due to market events, age, or life changes?
• Are your estate planning goals reflected in your current investment strategy?

Aligning your portfolio with both short- and long-term objectives is critical—not just to preserve wealth, but to ensure it continues to serve your broader legacy.

Implement a Disciplined Rebalancing Strategy

Once you've identified how your portfolio has shifted, rebalancing is the next step to bring it into alignment with your desired risk and return profile.

There are a variety of approaches to rebalancing:

• Calendar-based rebalancing: Rebalancing on a set schedule (e.g., quarterly, semiannually, or annually) regardless of market conditions.
• Threshold-based rebalancing: Triggered when an asset class drifts beyond a specific percentage from its target allocation.
• Tax-sensitive rebalancing: Takes into account the tax impact of trades, prioritizing tax-advantaged accounts and minimizing realized gains in taxable ones.
• Cash flow-based rebalancing: Uses new contributions or withdrawals—such as required minimum distributions or proceeds from a liquidity event—to adjust allocations without triggering unnecessary taxable events.
• Goals-based rebalancing: Ensures that portfolio changes align with evolving financial goals, such as philanthropic planning, liquidity needs, or generational wealth transfer.

Coordinate Across Your Broader Financial Plan

Investors often have complex financial lives that include trusts, business interests, real estate holdings, and generational wealth transfer plans. With that in mind, consider these additional elements:

• Estate planning: If applicable, ensure your investment strategy supports the transfer of wealth, whether through trusts, gifting strategies, or charitable vehicles.
• Philanthropy: If giving is part of your plan, integrating donor-advised funds or charitable remainder trusts can offer tax-efficient solutions that support your investment strategy.
• Liquidity planning: Evaluate whether your portfolio provides sufficient access to cash for potential expenses or opportunities—without having to sell long-term investments at an inopportune time.

Consider Professional Financial Advice

Significant wealth brings added complexity—and the need for a thoughtful, coordinated strategy. At OneDigital, we offer tailored investment guidance to help clients stay aligned with their long-term goals.

Our team of advisers works with you to simplify the complexities of wealth management—delivering insight into investments, insurance, taxes, estate planning, and much more. We take the time to understand what matters most to you, so we can build a shared vision of success, tailored to your goals.

If you’re interested in learning more, schedule a time to meet with our team and take the next step toward financial clarity and growth.

Looking for more information or to speak with an advisor? Our Financial Academy page has you covered! Find helpful resources to help you do your best work and live your best life.

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Investment advice offered through OneDigital Investment Advisors LLC.

Information is provided for educational and information purposes only.

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