QUESTION: Rebalancing: how to rebalance without paying extra commissions?

Rebalancing an investment portfolio is often accompanied by additional costs in the form of brokerage commissions and capital gains taxes. To minimize these expenses and avoid losing yield, it is necessary to use smart tactical techniques and optimize every trade.

The most effective way to rebalance without selling assets is to direct new regular cash contributions into lagging asset classes. If your portfolio consists of stocks and bonds, and the share of bonds has decreased, simply buy bonds with your next paycheck or dividends, thereby restoring the balance.

Also, avoid extremes in trying to catch the perfect moment for every trade, because excessive trading always leads to rising costs. Leave room for life, record your progress with small checkpoint milestones, and perform buy or sell operations only when the deviation is truly significant.