When you make changes to your portfolio on your Gusto Retirement dashboard, any required reallocations are generally processed within 1-3 business days from when the submission is received. However, certain scenarios may increase processing time.
Pending activity, like payroll contributions, may affect the timing of portfolio allocation updates, as all account transactions must settle before a reallocation can occur.
Additionally, because we submit trades before values (prices) are finalized at the end of the trading day, the value is estimated, and Gusto adds a "trade buffer” to the targeted trading amount. If the sale is less than the buffered amount (undersell), we may need to sell additional securities on subsequent days.¹ In times of market volatility, this could result in a delay of when your portfolio changes will apply. Please see the Trade Process in our Terms of Service for additional information on how Gusto Investment Services ("Gusto") handles trades.
When does reallocation apply?
When you change your portfolio, Gusto's system will automatically determine whether your investments must be reallocated.
No change in fund lineup
If the new portfolio holds exactly the same funds and only the allocation amount changes (the percentages you have invested in each fund) a rebalance will only occur if your total portfolio drift reaches or exceeds 5%.
If the requested changes result in less than 5% drift, or less than $250 will be reallocated, no reallocation will be initiated. Instead, upcoming contributions are allocated to bring the funds in your portfolio to the new target amounts.
Change in fund lineup
If your new portfolio includes any fund you don't currently hold or drops one you do, a reallocation will occur. This applies whether you switch to a different managed portfolio or build a custom one. If your fund lineup changes, your investments are reallocated regardless of your balance or drift.
How often can I change my portfolio?
Once a reallocation is fulfilled, there is a 30-calendar-day restriction before any further reallocations will be received and completed.
As a result, any requests to change your portfolio again will not occur until this timeline has passed.
¹ If the sales proceeds are less than the dollar amount, Gusto will sell additional securities on subsequent days until the total amount of the sales proceeds (based on the Market Close Price) equals the dollar amount. In the event your account has pending activity, trade execution may be delayed until the activity settles in your account. Pending activity can include, but is not limited to, payroll contributions, processing of fees, processing of loan payments, disbursement requests, and automatic portfolio rebalancing.
This information is for illustrative purposes only, and is not intended to be construed as investment or tax advice or as an assurance or guarantee of future performance. Investing involves risk and investments may lose value, including loss of principal. Investment advisory services for Gusto's 401(k) product (when 3(38) fiduciary services are appointed) are offered by Gusto Investment Services, LLC, an affiliated SEC-registered investment adviser. Expense ratios for custom portfolios will vary. For more information regarding these fees, see the ADV 2A Brochure and Form CRS. These expense ratios are subject to change by and paid to the fund(s). View full fund lineup.