Rebalancing

Handles the mechanics of keeping portfolio allocations from drifting after market moves. You get calendar versus threshold strategies, optimal band width calculations from the Leland model, and tax-loss harvesting workflows that respect wash sale rules. The rebalancing premium section explains why systematic rebalancing can add return through volatility harvesting, though it's honest that this underperforms in trending markets. Most useful when you're deciding between rebalancing frequencies, setting tolerance bands based on transaction costs and risk aversion, or working out tax-efficient approaches across taxable and retirement accounts. The cash flow rebalancing guidance is especially practical since it avoids triggering taxable events entirely.