Portfolio Rebalancer

Calculates exact trades needed to rebalance your portfolio back to target allocations. Considers tax implications, transaction costs, and optimal rebalancing strategies to minimize friction.

Usage

Provide your current portfolio holdings with values, your target asset allocation percentages, and any constraints (tax-advantaged accounts, wash sale rules, minimum trade sizes). Specify your rebalancing method preference.

Examples

• "Rebalance my 60/40 stock/bond portfolio that has drifted to 70/30 due to equity gains, minimizing taxable events"
• "Calculate trades to realign my portfolio to target allocations across 5 asset classes with $10,000 in new cash"
• "Show which holdings to sell for tax-loss harvesting while maintaining my target allocation"

Guidelines

• Use threshold-based rebalancing: only rebalance when allocations drift more than 5% from targets to reduce trading
• Rebalance with new contributions first to avoid selling and generating taxable events
• Consider tax lot selection: sell highest-cost-basis lots first to minimize capital gains taxes
• Rebalance tax-inefficient assets (bonds, REITs) within tax-advantaged accounts (IRA, 401k) when possible
• Include transaction costs in rebalancing calculations; frequent small trades can erode returns