Rebalancing is key


Rebalancing can help you remain properly invested as markets shift.

Over time, certain asset classes may outperform others, particularly during periods of extreme market movement. This can create changes in your portfolio that could alter the level of risk you're taking on.

The hypothetical example below shows what can happen when a portfolio isn't properly maintained. Over the course of 10 years, as U.S. stocks increased in value relative to bonds, the portfolio's allocation to U.S. stocks increased from 42% to 63%. While this "drift" could have provided the potential for stronger returns in an up market, they also exposed the investor to greater risk in a down market.

Increased risk as stock markets rise


Two pie charts show the makeup of a hypothetical portfolio and how it can drift over time. In December 2015, the portfolio starts with 42% in U.S. stocks, 35% in bonds, 18% in international stocks, and 5% in short term investments. By December 2025, it held 63% in U.S. Stocks, 17% in bonds, 17% in international stocks, and 3% in short term investments. This shows how your risk can increase as stock markets rise.

Hypothetical example. For illustrative purposes only. Actual performance may vary, perhaps significantly, from the performance results shown. Differences in account size, timing of transactions, and market conditions prevailing at the time of investment may lead to different results. Chart data is valid through 12/31/2025.


We believe that the mix of investments in your portfolio should be based on your comfort with risk and aligned to your financial goals, not dictated by market swings. Through a long-term focus on asset allocation, we seek to provide a level of risk that's aligned to your goals to help you stay invested over time.

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We continually monitor the level of risk in your portfolio and make adjustments as needed. Through rebalancing, we evaluate opportunities and may periodically buy or sell investments to help restore the appropriate risk and return characteristics of your portfolio.


Past Performance is no guarantee of future results. Hypothetical example for ilustrative purposes only. Source: Morningstar Direct, as of January 31, 2026. Methodology: Created a hypothetical portfolio created in MS Direct comprising a 60% allocation to the Russell 1000 Total Return USD and a 40% allocation to the Bloomberg U.S. Aggregate Bond Total Return USD. The rebalanced portfolio was set to rebalance on a quarterly basis.


We believe that staying invested through up and down markets can help keep your investment strategy on track. Through disciplined rebalancing, we seek to provide you with a smoother investment experience that's aligned to your goals.

From 1950 to 2025, the median total cumulative returns of the S and P 500 after a 20% decline began were 7% for the rest of the year once the bear market began, 29% after one year, 64% after 3 years, and 93% after five years. All 14 recessionary periods had positive median total cumulate returns after 3 years, and 12 were positive after 1 year.

Past performance is no guarantee of future results. Source: Strategic Advisers LLC, Bloomberg Finance, L.P.
* Year recession occurred, as defined by the National Bureau of Economic Research (NBER), as of 12/31/25.

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