Lecture 12 (25) Chapter 2: Rebalancing and the Minimal-Maintenance Action Plan

One question left: how often do you actually need to touch any of this? The honest answer, matching everything this course has stood for, is: far less than you'd think.

Why Rebalancing Matters at All

Left alone, your four layers from Lecture 11 drift. If equities have a strong run, your Growth Satellite and Core layers grow faster than your Foundation and Income layers. It quietly turning a portfolio you built for moderate risk into something more aggressive than you actually chose, without you deciding that on purpose. Rebalancing means periodically nudging the proportions back toward your original targets.