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Can I use new contributions to rebalance instead of selling anything?

Yes, and it's often the smartest way to rebalance, especially in taxable accounts. Instead of selling appreciated holdings and triggering capital-gains tax, you simply direct your fresh contributions — and reinvested dividends — toward whatever asset class has fallen below target. Over time this nudges your allocation back to plan without a single sale. It works best while you're still adding meaningful money relative to your portfolio size; early in your investing journey, contributions alone can correct most drift. As your portfolio grows large, new money may not be enough to fully rebalance, and you'll occasionally need to trade — ideally inside tax-advantaged accounts where selling is tax-free. The habit to build: every time you invest, send the money to your most underweight holding rather than splitting it evenly. It's tax-efficient, automatic, and keeps you from ever buying high.

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