Portfolio Monitoring and Rebalancing Strategy for Retirement Planning

XYZ Wealth Management is responsible for a $10 million diversified portfolio for a high-net-worth client, Mrs. Smith, aged 60, who is planning for retirement in the next five years. The portfolio is divided among equities (60%), fixed income (30%), and cash (10%). The investment strategy aims to achieve capital appreciation while managing risk and generating income suitable for Mrs. Smith's retirement needs.

In the past year, the equity market has outperformed expectations, resulting in the equity component of the portfolio now comprising 75% of the total asset value. Conversely, the fixed income allocation has underperformed and represents only 20% of the portfolio's value, while cash remains at 5%. Considering the client's risk tolerance, investment objectives, and market conditions, outline a comprehensive monitoring and rebalancing strategy for the portfolio to ensure alignment with the original investment objectives.