C-Suite Executives: Diversifying Concentrated Wealth
By Matt Kuhn, AIF®, CFA
C-suite executives often face challenges in developing long-term investing strategies that suit their unique financial positions. We regularly work with executives to develop forward-thinking strategic investment plans to help manage the specific risk factors that accompany their personal wealth. Here’s how:
Public Company Executives often have stock options representing significant, concentrated wealth. While such concentration often helps create significant wealth, it can expose executives and their families to unnecessary risk over time. We work with executives to systematically reduce concentration risk in a tax efficient manner, with particular attention to the emotional challenges of divesting large tranches of single stock exposure. Our advisors are well versed in incentive stock options (ISOs), restricted stocks options (RSUs), employee stock purchase plans (ESPPs) and other topics related to concentrated equity positions.
Private Company Executives face similar challenges to their public company counterparts, with the exception of liquidity. Privately held companies are generally illiquid compared to publicly held companies. When there is a liquidity event, it usually involves the outright sale of a company, transforming what was once illiquid wealth into liquid wealth. We specialize in partnering with entrepreneurs as they transition from having concentrated wealth in a company they know everything about, into a portfolio of liquid investments designed to support their family and future generations.
Contact Harris Financial Advisors today discuss how we can help you develop a strategic financial plan to diversify concentrated wealth, manage risk and chart the course for a bright future.