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If I change my risk score, how does Wealthfront transition my account to my new investment plan?

Before adjusting your risk score, you may want to review our blog post on the right and wrong reasons to change your risk score.

 If you change your risk score in a taxable account, our software will attempt to transition your account to your new allocation in a tax-efficient manner and minimize realized short term capital gains.  If rebalancing will generate significant tax consequences or result in wash sales, then we may not trade right away. This means your allocation may differ from your target allocation for an extended period of time. When you make additional deposits, receive dividends or when overweight asset classes subsequently trade at a loss we’ll use these opportunities to transition your account to your new allocation. 

If these trades will not result in significant tax consequences or wash sales, we typically rebalance your account within one business day.

If you change your risk score in a retirement account, we typically rebalance within one business day. Please note that we do not guarantee the timing of any trades.

 

Nothing in this blog should be construed as tax advice, a solicitation or offer, or recommendation, to buy or sell any security. Financial advisory services are only provided to investors who become Wealthfront Inc. clients pursuant to a written agreement, which investors are urged to read carefully, that is available at www.wealthfront.com. All securities involve risk and may result in some loss. For more information please visit www.wealthfront.com or see our Full Disclosure. While the data Wealthfront uses from third parties is believed to be reliable, Wealthfront does not guarantee the accuracy of the information.

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