Transitioning to a new portfolio allocation

Transitioning your taxable Investment Account

When you modify the portfolio allocation in your taxable Investment Account, you won’t necessarily arrive at your target allocation right away. That’s because our software transitions your allocation in a tax-sensitive way to help keep your tax bill low. 

It takes time to transition to your new target allocation — and varies based on your current holdings and any tax implications. And because our software evaluates the tax consequences of each trade and minimizes capital gains, your account could deviate from your new target allocation for an extended period of time – particularly if you have a lot of embedded capital gains in your account.

Transitioning your Wealthfront IRA or 529

When you update your allocation in a Wealthfront IRA or 529 College Savings Plan, your portfolio will typically reflect your new allocation within one trading day.

Please note that if you make multiple allocation changes (including changing your risk score) in any account type within a short period of time,  your portfolio might not reflect those changes immediately. Our software is designed for long-term investing, and isn’t optimized for this situation. 

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