Concentrated stock positions may result from long-term family holdings, mergers and acquisitions, IPOs, private equity distributions, or company stock options. As a fiduciary, we can help you determine the structure that best suits your needs for diversification, wealth transfer, or hedge positions. Depending on your risk tolerance and the feasibility of selling the stock, there are a number of strategies to consider when managing your concentrated stock position, including:
Stock option plans can be a lucrative part of your compensation package. We evaluate the intrinsic value of your options and review your wealth management goals. Then, we develop a customized exercise strategy that considers your risk tolerance, income tax situation, the overall stock market environment, your single stock concentration, and any restrictions against selling the underlying stock.