When you opened your 401(k) or Individual Retirement Account (IRA), you allocated varying percentages of your investments into different fund types. For example, you might have placed 60% in growth funds and 40% in bond funds. Market fluctuations, however, may have caused those percentages to shift — even though you didn’t move a penny.
It’s a good idea to periodically review your percentages and make any necessary adjustments, and the beginning of the year is usually a good time to make those changes. You may want to rebalance your investments back to their original allocations.