About Candor's tax-free rebalancing

The way Candor adjusts your portfolio's risk uses an advanced strategy designed to save you on taxes.

How rebalancing usually works

When you use a traditional advisor to manage a portfolio, every quarter they’ll adjust your portfolio to make sure it’s within its risk objective. This involves selling some assets and buying new ones to replace it. However, every time you sell something you're taxed on the gains — this means every quarter the advisor will end up racking up a tax bill for you.

According to research by Morningstar, rebalancing can mean that you give up as much as 2 percentage points of your returns for the year.

How Candor's tax-free rebalancing works

Instead, Candor automatically re-invests your RSU proceeds in a way that continuously adjusts risk without selling any current investments. Candor’s portfolio rebalancing does not cost you any extra in taxes.

Note that if you stop receiving RSUs, Candor will stop rebalancing your portfolio. For additional details about how Candor works, see Form CRS and associated conversation starters.