Portfolio a alokace
Q4 Portfolio Review: What to Check Before Year-End
Key takeaways
- The Q4 quarterly review is the most important review of the year — the tax deadline and the end of the investment year are both approaching.
- Check your allocation and rebalance if needed — sell the overweight asset class and add to the underweight one.
- Sales in Q4 can have tax implications — verify whether you meet the time test or value test.
- Prepare a regular investment plan for next year, ideally with automatic DCA.
- Document all trades immediately — you will appreciate a clear record when filing your spring tax return.
The Q4 quarterly review is the most important review of the entire year: the tax deadline is approaching and you still have time to thoughtfully prepare a plan for next year. It is not about panic or major shifts — it is about a calm, systematic examination.
Why Q4 Is Different from Other Quarters
Throughout the year you monitor your allocation and let the markets do the work. But in Q4 two additional things come into play: the end of the tax year is approaching and you have one last chance to influence the outcome of 2026. If you have realised taxable gains during the year, it may make sense to consider whether you also have losses in the portfolio that could offset those gains — so-called tax-loss harvesting. At the same time: every sale means a potential tax liability, so do not sell unnecessarily.
Rebalancing: When and How
Markets do not grow evenly throughout the year — after 9 months one asset class may have a significantly higher weight than you planned. Rebalancing is recommended when the deviation from the target allocation reaches 5 or more percentage points. Sell the overweight portion and add to the underweight one. Alternative: direct new contributions to the underweight class without selling (a tax-cleaner approach).
- Check the current weight of equities, bonds, and cash.
- Compare with the target allocation you set when building your portfolio.
- Consider the tax implications of selling — especially for positions held less than 3 years.
- More in how to build your first portfolio.
Tax Implications of Q4 Sales
If you plan to sell ETFs or stocks, distinguish whether you meet the time test (holding period over 3 years) or the value test (total proceeds from securities sales up to CZK 100,000 per year). Sales meeting these conditions are exempt from tax. Detailed explanation in ETF taxes in the Czech Republic. Since 2025 a cap of CZK 40 million in annual proceeds applies to the time-test exemption.
Plan for Next Year
Q4 is the ideal time to set or update your regular investment plan for 2027. How much will you invest each month? In which funds? Will you DCA or invest larger lump sums? Drawing up a plan in advance eliminates emotional decision-making. More on regular investing in the article on DCA cost averaging.
FAQ
How often should I review my portfolio?
Quarterly is sufficient — that is 4 times a year. Q4 is the most important because the end of the tax year is approaching. Too frequent checks lead to emotional interventions that reduce long-term returns.
When does rebalancing make sense?
When the allocation deviates from the target by 5 or more percentage points. First try directing new contributions to the underweight portion — avoiding a sale is tax-cleaner than selling an overweight position.
What is tax-loss harvesting?
A strategy in which you sell loss-making positions before year-end to offset taxable gains from other sales. Specific rules apply in the Czech Republic — always verify current legislation or consult an adviser.