Managing Concentrated Stock Wealth

Concentrated stock positions are among the oldest and most familiar issues faced by financial advisors. They will likely be part of the job as long as entrepreneurs create new wealth, and stock, options, and other stock-based measures are part of executive compensation. Managing Concentrated Stock Wealth is the advisor's guide to skillfully managing the risk and the opportunity presented by concentrated stock holdings. Written by Tim Kochis, a recognized leader in financial planning, this Second Edition walks you through 20 strategies for managing concentrated stock wealth-organized from easiest to more complex-to demonstrate best practice for approaching this special financial concern. Each strategy equips you with the tools and information you need to preserve and grow your clients' wealth. Supported with examples from the author's more than 40 years of experience, this practical resource shows you the most current tactics, how best to present a client's choices, and the reasons why some are better than others. Kochis addresses common obstacles-such as securities law, taxes, and psychological resistance-and shows you the strategies to overcome them. This updated and revised edition includes: Up-to-date references, calculations, and illustrations based on the latest tax laws Enhanced coverage of derivatives strategies and more extensive coverage of pre-public tactics Effective approaches for convincing reluctant or skeptical clients that diversifying their portfolios can better optimize their wealth The latest, proven techniques for exploiting stock wealth concentration to achieve opportunistic strategies Standard investment wisdom says never put all of your eggs in one basket, but compensation packages, inheritances, IPOs, buyouts, and the like leave many investors holding a significant portion of their wealth in one stock-often leaving their portfolios in a dangerously risky position. Managing Concentrated Stock Wealth, Second Edition shows you how to manage the risks or turn an apparently precarious position into an advantage. Managing Concentrated Stock Wealth, Second Edition is the authoritative guide to the full range of choices financial advisors have to manage their clients' concentrated stock wealth both to reduce risk and to maximize opportunity. This practitioner's go-to resource of strategies and tools shows what actually works. Fresh coverage takes you through the ins and outs of how concentration presents opportunities for preserving, and growing, wealth. This revised edition presents an insider's look at why there's more opportunity than ever to profitably serve clients.