Portfolio Rebalance
Workflow
Step 1: Current State
For each account, capture:
- Account type (taxable, IRA, Roth, 401k)
- Holdings with current market value
- Cost basis (for taxable accounts)
- Unrealized gains/losses per position
Step 2: Drift Analysis
Compare current allocation to IPS targets:
| Asset Class | Target % | Current % | Drift | $ Over/Under |
|---|---|---|---|---|
| US Large Cap Equity | ||||
| US Small/Mid Cap | ||||
| International Developed | ||||
| Emerging Markets | ||||
| Investment Grade Bonds | ||||
| High Yield / Credit | ||||
| TIPS / Inflation Protected | ||||
| Alternatives | ||||
| Cash |
Flag positions exceeding the rebalancing band (typically ±3-5%).
Step 3: Trade Recommendations
Generate trades to bring allocation back to target:
Tax-Aware Rebalancing Rules:
- Prefer rebalancing in tax-advantaged accounts (IRA, Roth) first — no tax consequences
- In taxable accounts, avoid selling positions with large short-term gains
- Harvest losses where possible while rebalancing
- Watch for wash sale rules (30-day window) across all accounts
- Consider directing n…
