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Automatic Rebalancing:
Provided for 401(k) Plans Through PAi

Because the value of your investments changes daily, your investment allocation will as well. If you want to keep your investments aligned with your long-term goals, adjustments will need to be made on a regular basis. We know this can be a hassle.

Automatic rebalancing is a plan feature that works to maintain your intended asset allocation by shifting your investments around to match your elections. This typically happens on a quarterly basis. Here’s an illustration of how rebalancing works:

 
401(k) auto rebalance example.png
 

Benefits of rebalancing your retirement portfolio

You’ve probably heard the famous investing adage of “buy low, sell high.” Although it seems simple enough to do, it’s actually pretty complicated. One way to systematically buy low and sell high is to rebalance your account. Gains on higher performing investments, in turn, can be invested in alternate investments. With the automatic rebalancing feature, this will be taken care for you. 

To take advantage of this feature, login to your retirement account and opt in to the auto rebalancing feature. Navigate to: My 401k >> Investments >> Auto Rebalance.


Need help? A financial advisor, including the one servicing your plan, may be an excellent resource when reviewing your account.