Rebalancing

Brings the book back toward the portfolio-construction targets at minimum cost. Good rebalancing is mostly about not trading: the cheapest, most tax-efficient trade is the one a no-trade band lets you skip.

Mandatory framing

• Educational, not personalized advice (taxes especially are situation-specific — see a CPA).
• Rebalancing is a risk-control tool (it trims winners, controls drift), not a return-maximizer.

The default rule: calendar check, threshold act

• Check on a calendar (monthly or quarterly) — predictable and auditable.
• Act only on a threshold breach — a sleeve has drifted beyond tolerance:
  • ±20% relative (e.g., a 10% target sleeve breaches at <8% or >12%), or
  • ±5% absolute, whichever you standardize on.
• This combines low turnover with bounded risk and beats naive "rebalance every month regardless."