How to Rebalance a Portfolio with New Cash
The simplest way to rebalance your portfolio without selling investments or triggering taxes.
Most investors think rebalancing means selling something.
It doesn’t have to.
If you have new money to invest, you can often fix your portfolio drift just by buying the right assets.
Core Rule
Don’t add money to what’s already overweight.
Example
Your portfolio:
- US Equity → +12% overweight
- International → -10% underweight
- Bonds → -2% underweight
You have $10,000 to invest.
Instead of buying everything proportionally:
- $8,000 → International
- $2,000 → Bonds
This moves your portfolio back toward target without selling anything.
See exactly how to allocate your cash instantly
Want to understand the full picture? Learn how to calculate portfolio drift