Rebalancing and Your Retirement Savings
Just as important as diversifying your investments is keeping those investments in balance. Over time, the value of individual investment options can increase or decrease with the markets. After a while, some investment options may account for a larger part of the portfolio than you originally intended, while others may account for a smaller portion.
Rebalancing is the process of bringing your allocation back in line with its original mix. It's a good idea to review your account once a year to see if it needs to be rebalanced. Keep in mind that individual investments typically fluctuate, so you will want to view each one through a long-term lens.
If your retirement plan is with the Principal Financial Group® (The Principal®), you can easily rebalance on our website. Just visit principal.com and follow these steps:
- Log in as "personal"
- If you have more then one account, select the account you'd like to rebalance by clicking "details" on the account
- Click on the "Make Changes" tab
- Select "Rebalance" under "Changes to the Current Balance in this account"
- Follow the instructions to complete the rebalancing process
If your retirement plan is not with The Principal, contact your employer to learn how to rebalance your account.
No investment strategy, such as diversification or rebalancing, can guarantee a profit or protect against loss in times of declining market values.
