Diversify Thoughtfully Without Losing What You Have Built.
Structured diversification for executives and founders holding significant positions in a single security. We help balance tax efficiency, risk reduction, and personal priorities.
A concentrated stock position often represents years of work, loyalty, and belief in a company. It may also represent the largest single risk in your financial life. The tension between emotional attachment and financial prudence is real, and we respect it. At Tierney Wealth, we help clients navigate this tension with a structured approach that helps reduce concentration risk on a timeline and at a pace that makes sense for their tax situation, their income needs, and their personal relationship with the holding.
How We Approach Concentrated Stock Positions
Risk Assessment Without Judgment
We begin by quantifying the risk your concentrated position represents as a percentage of your total net worth, your income, and your financial plan. We present the data clearly and let you decide how much risk is acceptable. We are here to advise, not to pressure.
Multi-Year Diversification Plans
Selling a large position in a single year can trigger an enormous tax bill. We design staged diversification plans that spread transactions across multiple tax years, seeking to reduce the tax impact while systematically reducing your exposure.
Tax-Efficient Transition Strategies
Depending on your situation, we may recommend charitable donations of appreciated shares, exchange funds, options-based hedging strategies, or 10b5-1 plans for executives with trading restrictions. Every approach is tailored to your cost basis and tax profile.
Integration With Your Broader Financial Plan
Your concentrated position does not exist in a vacuum. We evaluate it alongside your other assets, your income needs, your estate plan, and your risk tolerance to determine the optimal pace and method of diversification.
Ongoing Monitoring and Adjustment
Markets change, tax laws change, and your personal circumstances change. We monitor your position regularly and adjust the diversification strategy as conditions warrant, to help keep the plan aligned with your circumstances as they change.
“The goal is not to abandon the position that built your wealth. It is to help ensure your financial life is not dependent on a single holding.”
Tierney Wealth
