Rebalancing Strategies for a High-Net-Worth Client

Consider a high-net-worth client aged 55 who has recently received a substantial inheritance of $5 million and wants to revise their investment portfolio. Currently, the client has a well-diversified portfolio consisting of 60% equity, 30% fixed income, and 10% alternative investments. The client has expressed a desire to adjust their investment strategy to incorporate a more aggressive growth approach due to their long-term investment horizon, while also maintaining a level of liquidity sufficient to cover any potential future medical expenses.

Based on the client's risk tolerance, income needs, and investment goals, provide a detailed analysis of potential rebalancing strategies that could be utilized. Discuss the advantages and disadvantages of each strategy, including time-based, threshold-based, and strategic rebalancing methods. Additionally, explain how market conditions could influence these strategies and recommend a specific approach tailored to the client's circumstances.