- If one stock now represents more than 15 percent of the value of your total portfolio,
it's considered to be a 'concentrated holding'.
A great company's stock often grows faster than the rest of your portfolio.
Financial advisers are a funny lot: First they tell you to invest for the long term. Then, when you actually follow their advice and the investments did what they were supposed to do, they chastise you for taking on too much risk.
because your best holding has now grown to 30% of you portfolio.
resulting in big gains in the best performers sbdid invest for the long term you may have stock with a very low cost basis relative to its current market value. The who actually
If one position now represents more than 10 percent of the value of your total portfolio, it's considered to be a 'concentrated holding'.
Financial planning for concentrated holdings
Old Field Advisors can provide you with a specialized planning analysis focused on the impact of equity compensation or low cost basis concentrated holdings. Advisors may 'white label' the report or offer it to clients as a separate report or appendix to their own financial plan.
Issues typically addressed include: ·
- Exercise and holding strategies for various forms of equity compensation;
- Risk management and protection of concentrated holdings with listed options;
- Tax impact of recommendations.
Risk management and diversification programs
Diversification programs are often strengthened by the tax management opportunities accruing to a multi-year exit plan. In those instances, your client may benefit from hedging their exit period risk with listed options.
Many advisory firms prefer to outsource these highly individualized hedging programs. Old Field Advisors can structure and execute a customized risk management and diversification program for your client, as your sub advisor.
- Asset custody TD Ameritrade's or Schwab's institutional platform.
- Fees are structured as a time based retainer, based on the complexity of the program required to address specific client goals.
- eMoney Advisor wealth management portal All sub advisory clients are provided with a personal wealth management website, facilitating a consolidated view of all their assets and accounts, which they can share with you.