Why rebalance my account?

It's important to have a retirement asset allocation strategy that fits your risk tolerance and investment time horizon. But don't stop there--be sure that your retirement account's asset allocation stays on target over time.

Watch for shifting performance over time.

Markets rise and fall, which affects investment performance. The percentages you initially allocated to specific asset classes over time may no longer match your original choices. Without rebalancing, you may expose yourself to investment risk that is outside your comfort zone.

For example, suppose the stock market experiences a three-year uptick, consistently posting above-average gains. But, the bond market remains flat during this period. If you chose a 50/50 split between stock and bond asset classes, you may find that due to their better performance, stocks now represent 75% of your overall retirement account.

Periodically review your retirement account.

Because shifts like this occur, you should periodically review your retirement account to make sure the current asset allocation matches your original selection. The Hartford offers an automatic asset rebalancing tool to help make it easier for you to maintain your asset allocation strategy. You can select a one-time rebalance option or choose your own rebalancing frequency (monthly, quarterly, semi-annually, annually).

Rebalancing your retirement plan account is important if you want to stay on track with a chosen asset allocation strategy. Consider reviewing your strategy periodically to make sure it meets your risk tolerance and investment time horizon.