Asset allocation


Q: When rebalancing my portfolio to meet asset allocation targets, should I consider retirement accounts separately from currently taxable investments, or lump them together for an overall asset allocation? I am about 12 years from retirement.

A: It’s most efficient to rebalance your entire portfolio, as a whole, while positioning assets in the account where they best fit. This approach can be difficult, however, and it may be more practical for you to rebalance each account on its own. There is no “right” answer for your question. The rebalancing approach selected depends upon the methods preferred by the person responsible for making your retirement plan work.


About Author

Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to and view his blog at

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