Asset Allocation Analysis: Does Your Portfolio Match Your Plan?

Updated September 26, 2026.

Asset allocation analysis compares what you own with the investment mix you intended to hold. Start with a defined portfolio, reliable classifications and a target based on your goals. A drift finding is a reason to review the plan, not an automatic instruction to trade.

Mezzi can support the discussion using connected accounts and personal context. This guide explains the calculation and review process without assuming a particular app screen, automatic trading feature or universal rebalancing threshold.

Define what the portfolio includes

List the accounts intended for the goal. A retirement review might include several workplace and individual accounts; a home-purchase review may use a different set of assets. Label excluded holdings and missing information.

Do not automatically include a house or emergency reserve in the same denominator as a long-term investment allocation. Those assets can be important to the household while serving a different purpose. Decide the scope before calculating percentages.

Mezzi's account groups include supported investments, banking and liabilities, plus manual assets such as real estate. That broader picture can help identify purposes, but it does not determine the right analytical grouping for you. Mezzi account groups

Calculate the current mix

Consider a hypothetical $500,000 investment portfolio:

The stock allocation is eight percentage points above target. It is not simply “8% too high”: relative to the 60% target, the excess is about 13.3%. Use percentage points when describing the difference to avoid confusion.

These targets are invented for the example, not a recommendation. The appropriate mix depends on goals, horizon and risk circumstances. Investor.gov asset allocation guidance

Check classifications before acting

A mixed-asset fund may contain both stocks and bonds. Treating it entirely as one category can distort the result. Check whether the analysis uses underlying exposure, a broad label or unavailable data.

Likewise, a fund's holdings date may differ from an account balance date. A precise-looking percentage can combine information from different moments. Record the coverage and dates so you understand the estimate.

Exposure X-Ray supports investigation of underlying holdings in supported funds. It does not establish that every fund or private asset has complete look-through information. Mezzi capabilities

Determine why the mix changed

Market movement can change weights even without trades. Contributions, withdrawals, transfers and changes in the household's goals can also explain drift. A duplicate account appearing during a transfer can create an apparent allocation problem that is really a data issue.

Ask which explanation applies before deciding whether to rebalance. If the target itself is outdated, mechanically restoring it may not solve the real problem.

Keep the original rationale for the target. A review should connect the percentages to the purpose of the money rather than treating the target as a number without context.

Compare ways to address a difference

In the example, bringing stocks from $340,000 to $300,000 would match the 60% target at the same $500,000 total. That arithmetic does not mean the household should immediately sell $40,000 of stocks. It simply identifies the gap under a fixed-total assumption.

A review can consider future contributions, withdrawals, available cash and changes within different accounts alongside any sale. Each option has practical and tax implications. The appropriate choice depends on the circumstances and available account rules.

Do not assume a rebalance is tax-free or that software will execute it. Verify actual holdings, costs and relevant tax records before implementing a chosen action.

Choose a review policy you can follow

Investor.gov describes reviewing allocation on a calendar basis or when weights move by a predetermined amount. The suitable policy depends on the investor and should avoid unnecessary activity. Investor.gov rebalancing discussion

Write down the review trigger and what it means. A trigger can prompt investigation rather than a mandatory trade. There is no universal five-percentage-point rule appropriate for every asset class or household.

Do not assume a named alert or scheduled automation exists in an application unless its current documentation establishes it. A personal review calendar can be useful even without a specialized feature.

A practical Mezzi question

Add the relevant goal and constraints through AI Personalization, then ask: “For the accounts included in this goal, how does the available allocation compare with my stated target, and what information is missing?”

Check whether the answer uses the intended denominator, distinguishes estimated classifications and respects cash reserved for other purposes. Ask for the arithmetic behind any difference.

Mezzi provides guidance rather than automatically rebalancing holdings. Review the current plan scope, and implement any chosen change through the appropriate institution or authorized professional.

Keep a short review record

Record the included accounts, values, classification assumptions, target, observed difference and decision. If no action is needed, document why. That makes the next review more useful and prevents repeatedly reconsidering the same question without new evidence.

For a deeper discussion of whether the target itself fits the household, see portfolio risk and goals. Measurement and suitability are related, but they are not the same task.

Frequently asked questions

What is portfolio drift?

It is a difference between the current investment weights and the intended target mix. Market changes, cash flows or data issues can contribute, so investigate the cause before acting.

Is eight percentage points the same as eight percent?

No. A move from a 60% target to 68% is eight percentage points, or about 13.3% above the target in relative terms. State the measure clearly.

Does every drift finding require rebalancing?

No. Review the target, cause, costs, taxes and available ways to adjust. A trigger can prompt a review rather than an automatic trade.

Does Mezzi automatically rebalance my accounts?

No automatic execution is established here. Mezzi supports guidance using available data and context; implementation remains with the user and relevant institutions or professionals.