Managing Concentrated Stock Wealth
A guide for advisors enabling them to successfully manage concentrated stock wealth.
An old adage warns against carrying 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 advisors must overcome to successfully manage concentrated stock wealth. Managing Concentrated Stock Wealth fills a void in the adviser's arsenal and lays out the options available to clients. Using examples drawn from decades of work for thousands of investors, Tim Kochis shows not only what can be done, but also what actually works.
REVIEWS :“The book rattles through sales, gifts and retention, discusses
taxation and psychological behaviour, and ends on the ‘powers of
concentration’, reinforcing the message of finding some good in what is
often construed as a predicament.”
High Net Worth
Hardback, 256 Pages, Dimensions 234 x 156 MM Language English.
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
Tim Kochis, JD, MBA, CFP, is president of Kochis Fitz Wealth Management in San Francisco. Before forming Kochis Fitz in 1991, he was national director of personal financial planning for Deloitte & Touche and, before that, for Bank of America. He has chaired the CFP Board of Standards, the Foundation for Financial Planning, and the international Financial Planning Standards Board.