Investment Portfolio Tracker
Track your investments, monitor asset allocation, calculate gains/losses, and identify rebalancing opportunities.
Investment Portfolio Management
Why Track Your Portfolio?
Know where you stand: Understand your total wealth and how it's distributed
Monitor performance: Track gains, losses, and overall returns
Stay balanced: Identify when your allocation drifts from targets
The Power of Rebalancing: Portfolios rebalanced annually historically outperform buy-and-hold by 0.5-1% per year due to "selling high, buying low."
Asset Classes Explained
US Stocks
- Historical return: ~10%/year
- High volatility, high growth
- Examples: VTI, VOO, SPY
- Best for: Long-term growth
International Stocks
- Historical return: ~7-8%/year
- Diversification benefits
- Examples: VXUS, IXUS, EFA
- Best for: Global exposure
Bonds
- Historical return: ~4-5%/year
- Lower volatility, stable income
- Examples: BND, AGG, VBTLX
- Best for: Stability, income
Real Estate (REITs)
- Historical return: ~8-10%/year
- Inflation hedge, dividends
- Examples: VNQ, SCHH, RWR
- Best for: Income, diversification
Model Portfolio Allocations
Aggressive (Age 20-35)
90% Stocks / 10% Bonds | Expected: 8-10%/year
Best for: Long time horizon, high risk tolerance
Moderate (Age 35-50)
70% Stocks / 30% Bonds | Expected: 6-8%/year
Best for: Balanced growth and stability
Conservative (Age 50-65)
50% Stocks / 50% Bonds | Expected: 5-6%/year
Best for: Capital preservation near retirement
Income (Retirement)
30% Stocks / 70% Bonds | Expected: 4-5%/year
Best for: Steady income, low volatility
When to Rebalance
Calendar Method: Rebalance annually (e.g., January or birthday)
Threshold Method: Rebalance when allocation drifts 5%+ from target
New Money Method: Direct new investments to underweight assets
Tax Tip: Rebalance in tax-advantaged accounts (401k, IRA) first to avoid capital gains taxes.
Portfolio Mistakes to Avoid
- Over-diversifying (owning 50+ funds creates unnecessary complexity)
- Chasing past performance (last year's winners rarely repeat)
- Ignoring fees (1% fee costs $200k+ over 30 years on $500k portfolio)
- Emotional trading (buying high in euphoria, selling low in panic)
- Home country bias (US is only ~60% of global market cap)
- Not rebalancing (drift can increase risk by 20-30%)
Portfolio Action Plan
- Enter all your investment holdings in the tracker
- Set your target allocation based on age and risk tolerance
- Review current vs target allocation
- Identify rebalancing opportunities (5%+ drift)
- Execute trades in tax-advantaged accounts first
- Schedule annual portfolio review
Frequently Asked Questions
REBALANCING METHODS:
1. Calendar Method (Most Common)
• Rebalance once per year on a set date
• Example: Every January 1st or your birthday
• Simple, easy to remember
• Works well for most investors
2. Threshold Method
• Rebalance when any asset class drifts 5%+ from target
• Example: If stocks target is 60%, rebalance when it hits 65% or 55%
• More responsive but requires monitoring
3. New Money Method
• Direct new contributions to underweight assets
• Avoids selling (and potential taxes)
• Great during accumulation phase
TAX-SMART REBALANCING:
1. Rebalance in tax-advantaged accounts first (401k, IRA)
2. Use new contributions to rebalance in taxable accounts
3. Tax-loss harvest if selling at a loss in taxable
4. Avoid short-term capital gains (held < 1 year)
RESEARCH FINDINGS:
• Annual rebalancing adds ~0.5% return per year
• More frequent rebalancing has diminishing returns
• Never rebalancing leads to excessive risk over time