Q3 2026 Portfolio Rebalancing Plan
Current allocation has drifted 8% from target due to tech rally. Time to rebalance.
Current vs Target Allocation
| Asset Class | Current | Target | Delta |
|---|---|---|---|
| US Equities | 52% | 45% | +7% |
| Int'l Equities | 18% | 20% | -2% |
| Fixed Income | 15% | 20% | -5% |
| REITs | 8% | 8% | 0% |
| Commodities | 4% | 5% | -1% |
| Cash | 3% | 2% | +1% |
Rebalancing Strategy
Tax-Efficient Approach
- Direct new contributions to underweight assets (bonds, international)
- Harvest losses in international positions that are down YTD
- Trim US tech positions with highest gains in tax-advantaged accounts first
- Avoid short-term capital gains — only sell positions held >12 months
Risk Considerations
- Fed rate decision in September could impact bond allocation timing
- Dollar strength may continue to drag international returns
- Consider increasing bond duration as rate cuts become more likely
Action Items
- Review tax lot details for US equity positions
- Calculate estimated tax impact of rebalancing
- Set limit orders for international ETF purchases
- Schedule review for post-Fed meeting adjustment