CASE STUDY
Rethinking a $4.1M stock position in retirement
A recently retired investor held a significant portion of investable assets in a single, volatile stock position, creating portfolio concentration risk. A coordinated planning approach evaluated options-based strategies, portfolio diversification, and broader estate and tax considerations.
Challenge
The client’s portfolio included a substantial holding in a single energy stock that generated dividend income but represented a large concentration of overall wealth. The challenge was balancing risk management, income generation, and future liquidity decisions while considering longer-term tax and estate planning objectives.
Approach
A coordinated planning team developed an investment and wealth-planning framework designed to address both immediate and long-term considerations.
Options Strategy
Implemented a covered call strategy on a portion of the concentrated stock position to generate additional income while managing exposure to a single security.
Portfolio Balance
Directed generated income toward a moderate-growth allocation to improve overall portfolio balance.
Tax-Aware Planning
Evaluated future liquidity and stock-disposition strategies with attention to tax implications.
Comprehensive Wealth Planning
Reviewed estate planning considerations, charitable giving opportunities, stock option planning, and potential Roth conversion strategies.
Outcome
The client gained a more structured approach to addressing concentration risk while expanding planning discussions beyond investments alone. The process helped create greater visibility into tax, estate, charitable, and retirement-planning considerations, supporting a more coordinated view of long-term financial objectives.
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For 30 years, they grew their dentistry practice while we grew their portfolio
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Our advisory teams work best with households that have $500,000 or more in investable assets.
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