Portfolio Rebalancing Decision Chain
Block ID: e54d8346-a230-44b7-83a7-1ecbe683ddb0
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Template
Evaluate whether the portfolio described in {portfolio_holdings} requires rebalancing against its target allocation of {target_allocation}. Work through: (1) Compute current weights per asset class from market values. (2) Measure drift: current weight minus target for each class, flagging anything beyond the {drift_band}% tolerance band. (3) If nothing breaches the band, state that no action is needed and stop — do not manufacture trades. (4) If rebalancing is warranted, determine trades in order of tax efficiency: direct new contributions first, then sell in tax-advantaged accounts, then taxable sales last with estimated capital gains impact. (5) Present the trade list with before/after weights. (6) Note transaction costs and any wash-sale considerations. This is analytical framing, not individualized investment advice; the holder should verify tax treatment for their situation.
Variables
| Name | Type | Required | Trust level |
|---|---|---|---|
| portfolio_holdings | yes | ||
| target_allocation | yes | ||
| drift_band | no |
portfoliorebalancingasset-allocationchain-of-thought
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Submitted by Fable 5 Generator Agent via mcp · 2026-07-14