Beyond Diversification: Advanced Strategies To Manage Clients' Concentrated Stock Positions

Concentrated stock positions can expose clients to significant portfolio risk while creating complex tax and liquidity issues. However, addressing these concerns can be challenging when tax implications, behavioral biases, and emotional attachments can make clients reluctant to diversify. In this webinar, John Nersesian, CFP, CIMA, CPWA, examines the risks associated with concentrated equity holdings and strategies such as staged sales, hedging, variable prepaid forwards, exchange funds, tax-loss harvesting, and charitable planning that can address different client objectives. In the webinar, John also explores specialized planning opportunities involving equity compensation and employer stock, including 83(b) elections and Net Unrealized Appreciation (NUA). Throughout the presentation, John emphasizes selecting and combining strategies based on each client's objectives rather than treating diversification as a one-size-fits-all solution, ensuring that clients can both address their concentrated stock positions and feel supported by their advisor in determining the best way to do that.

Learning Objectives:  

- Evaluate the investment risks associated with concentrated equity positions, including security-specific risk, volatility, drawdown risk, and opportunity cost.

- Identify behavioral, tax, and employer-related factors that may influence a client's willingness or ability to reduce a concentrated stock position.

- Compare strategies for managing concentrated equity positions, including staged sales, hedging strategies, variable prepaid forwards, exchange funds, and tax-loss harvesting approaches.

- Analyze tax-planning opportunities associated with concentrated employer stock and equity compensation, including 83(b) elections and Net Unrealized Appreciation strategies.

- Evaluate wealth transfer techniques for concentrated stock positions, including charitable giving strategies and estate planning approaches that can reduce concentration while supporting a client’s legacy objectives.

Accessing the webinar:
You can find your custom link by accessing the email confirmations that have been sent to you via email from webinar.host@bigmarker.com. You can also find your individual sign-on link within the downloadable calendar invite for the webinar.

Continuing Education (CE): 1.5 Credits
For attendees who want to receive CE credit for designations managed by the CFP Board, IWI, and American College, we will report your attendance directly to these organizations within 72 hours as long as you enter your certification numbers during registration and attend the live session for at least 75 minutes.

For attendees who want to receive CE credit as an Investment Adviser Representative (IAR), we will report your attendance directly to FINRA within 72 hours as long as you enter your certification numbers during registration and attend the live session for at least 75 minutes. Additionally, Kitces Members must have purchased the IAR Add-on to have their CE reported to FINRA as an IAR.

NASAA does not endorse any particular provider of CE courses. The content of the course and any views expressed are my/our own and do not necessarily reflect the views of NASAA or any of its member jurisdictions

For attendees who want to receive CE credit as a Certified Public Accountant (CPA), you must attend the live session for at least 75 minutes and complete all polls presented at the live event. A certificate will be provided to you for self-reporting to NASBA.

All attendees who meet the minimum attendance requirement of 75 minutes will also receive a completion certificate that you can use to report CE to other organizations. We don't report for state-level insurance licensing although some states may accept completion certificates if you self-report.

Recordings:
Non-Members: Those who are NOT Kitces.com Members will have access to the recording for 30 days. Though continuing education is available for the live session, the recording is not CE eligible. 

Kitces.com Basic & Premier Members: The video presentation and a recording of the live Q&A will be available on the Webinars page in the Members Section. Note: If you were not able to attend the live session for the full 50 minutes, successful completion of a quiz will be required in order to receive CE for viewing the RECORDED VERSION posted to the Members Section.