Multiple alternatives for rebalancing your portfolio
Over time, fluctuations in the market may cause your retirement portfolio asset allocations to drift. While the asset allocations in your investment models remain fixed, this can happen because investments make or lose money at different rates from one another.
It is important to periodically rebalance your portfolio back to your investment model asset allocation to ensure your risk vs. return ratio remains within your comfort zone.
What is rebalancing?
Rebalancing involves exchanging assets among funds so that your portfolio again
matches the asset mix of your chosen model. Principal Path for Income makes
rebalancing your portfolio easy. Your Principal investment professional can
help you determine when rebalancing may be necessary.
What are your options?
Although your options depend upon whether your account is registered as a qualified
retirement plan or a non-qualified account, you have several options. You can
rebalance:
- Quarterly
- Semiannually
- Annually
- By request only
Your Principal investment professional can point out tax and fee consequences you should consider when rebalancing your investment portfolio. You should discuss these consequences with your tax advisor before making any rebalancing decisions.
Back to Principal Path for Income
Before investing in mutual funds, investors should carefully consider the investment objectives, risks, charges and expenses of the funds. This and other information is contained in the free prospectus, which can be obtained by:
- Calling 1.800.222.5852 and requesting a prospectus (all share classes)
- Downloading a prospectus (A, B & C shares)
- Downloading a prospectus (J shares)
- Requesting a prospectus be mailed to you (A, B & C shares)
- Requesting a prospectus be mailed to you (J shares)
Please read the prospectus carefully before investing. See the mutual fund section of our site for a description of the different share classes.
