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What is rebalancing?

rebalancing
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What is rebalancing?

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Rebalancing helps you maintain your target asset allocation among stocks and bonds. Rebalancing means that when one asset class exceeds its target, you sell a portion of that asset class and buy more of the asset class that has fallen below its target. Learn more about rebalancing. ^ The sale of an investment for the purpose of rebalancing may be subject to taxes.

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