For some, concentration can be a pathway to success, a deliberate strategy for exceptional returns; or, for many, it can be an unaffordable risk, a problem to be solved.
Managing concentrated stock risk is a challenge almost every advisor faces, yet, there aren’t many resources dedicated to the topic. Fortunately, Tim Kochis is here to help us think through this problem with a pragmatic framework. He has written a book on this topic. Managing Concentrated Stock Wealth: An Adviser’s Guide to Building Customized Solutions.
According to Tim, “Simplistic, one size fits all” approaches are rarely appropriate and some combination of tactics is often the best response. As I count them, there are at least 20 distinct concentration management strategies, ranging from immediate and very simple to long-range and quite complex.”
The complex strategies are often the favorites of those with something to sell or to manage for a fee; the simplest and fastest strategies are, for many, the best way to go.
In this webinar, learn more about the different ways to counsel your clients and manage concentrated stock risk.