Every time you make a deposit, withdrawal, or earn dividends, Managed Portfolios will strategically use these updates to rebalance your portfolio. This minimizes your tax consequences while keeping your milestones on track.
To get nerdy: when your account grows through deposits and dividends, Managed Portfolios buys the most under-allocated securities relative to target to get you closer to your target allocation. If you withdraw funds, we'll first sell the most over-allocated securities relative to the target. We'll also rebalance your portfolio if any portion strays by more than 5% from the target allocation.