An old adage cautions against putting all of your eggs in a single basket. Yet many investors maintain a significant portion of their wealth in one stock, as a result of executive compensation packages, stock inheritances, IPOs, or corporate buyouts, leaving their portfolio in a dangerous position.
Tim Kochis, a recognized leader in financial planning, has compiled more than fifteen strategies for managing concentrated stock wealth. The book explores the key barriers to addressing concentration risk—securities law, taxes, psychological resistance—that clients and their advisers must overcome to successfully manage concentrated stock wealth.
This book fills a void in the adviser's arsenal and lays out the options available to clients. Using examples drawn from decades of work, Tim Kochis shows not only what can be done, but also what actually works—and even how concentration can present unique opportunities for preserving and growing wealth.
Introduction.
PART I. SALES.
1 Constraints on Managing Concentration Risk.
2 Sale and Diversification.
3 Coordinating Long Shares With Stock Options.
4 Diversification Sales and Deferred-Compensation Plans.
5 An Out for Insiders.
6 Restricted Stock: Tackling Temptation.
PART II. GIFTS.
7 Gifts to Family.
8 Nonqualified Stock Options: Gifts to Family.
9 Gifts to Charity.
10 Charitable Trusts.
11 Nonqualified Stock Options: Gifts to Charity.
PART III. RETENTION.
12 Margin: An Acquired Taste.
13 Managing Concentration Through an Index Proxy.
14 Exchange Funds.
15 Derivatives and Hedges: Buying Time.
16 Powers of Concentration.
Afterword.
Index.
Overview
An old adage cautions against putting all of your eggs in a single basket. Yet many investors maintain a significant portion of their wealth in one stock, as a result of executive compensation packages, stock inheritances, IPOs, or corporate buyouts, leaving their portfolio in a dangerous position.
Tim Kochis, a recognized leader in financial planning, has compiled more than fifteen strategies for managing concentrated stock wealth. The book explores the key barriers to ...