Financial Planning for Corporate Executives

The Kayne Anderson Rudnick wealth management team provides a suite of financial planning and advisory services for corporate executives, including strategies to mitigate risks stemming from the ownership of a concentrated stock position.

Our financial planning services for executives include:

Tax-managed portfolio diversification services: At KAR, our experts will seek to manage your portfolio to minimize tax liabilities and maximize after-tax returns. With a focus on tax efficiency, we’ll strive to help you navigate complex tax laws and regulations.
Risk management services utilizing option hedging programs: KAR provides custom solutions that seek to help you hedge against market volatility and mitigate risk, including third-party hedging strategies designed to protect portfolios from unexpected events.
Exchange fund solutions: Unlock the potential of your appreciated assets with our exchange fund solutions. Our wealth management team can provide a tax-efficient strategy that allows executives to diversify their portfolio while deferring capital gains taxes. Our approach often involves tax and estate planning professionals to provide a balanced, customized, and comprehensive solution.

Executive Wealth Management FAQs

What is a concentrated stock position?: Is there such a thing as too much of a good thing with concentrated stock positions?

A concentrated stock position refers to a situation where an investor holds a significant portion of their portfolio in a single stock or a small number of stocks. This contrasts with a diversified portfolio, where investments are spread across multiple stocks, industries, and asset classes to help manage risk.

Many of our clients receive company stock as part of their compensation plan, especially those clients working at startups. Often, clients will find themselves in a position where a significant portion of their liquid financial wealth is tied to an individual stock with a low-cost basis.
What strategies are effective in managing concentrated stock?: There are several strategies that a wealth management team can help executives put in place for a concentrated stock position, including diversification, hedging, and tax planning.

Learn more about concentrated stock strategies.
What steps should I take to prepare for the upcoming IPO of the company I work for?: When a company goes public through an Initial Public Offering (IPO), it offers investors or employees of the company the opportunity to purchase shares of the company and potentially benefit from its future growth. To prepare for the IPO as an investor, it’s crucial to understand the key aspects involved. KAR’s wealth advisors have extensive experience guiding clients through pre- and post-IPOs and can help you develop a diversified investment strategy.

Learn more about how to prepare for an IPO.

Disclosure: This information is being provided by KAR for illustrative purposes only. Information contained on this site is not intended by KAR to be interpreted as investment advice, a recommendation or solicitation to purchase securities, or a recommendation of a particular course of action and has not been updated since the date of the material, and KAR does not undertake to update the information presented should it change. This information is based on KAR’s opinions at the time of the publication of this material and are subject to change based on market activity. There is no guarantee that any forecasts made will come to pass. KAR makes no warranty as to the accuracy or reliability of the information contained herein. The information provided here should not be considered to be insurance, legal, or tax advice and all investors should consult their insurance, legal, and tax professionals about the specifics of their own insurance, estate, and tax situations to determine any proper course of action for them. KAR does not provide insurance, legal, or tax advice, and information presented here may not be true or applicable for all investor situations. Additional information about KAR’s services and fees may be found in KAR’s Part 2A of Form ADV, which is available upon request or can be found at https://kayne.com/wp-content/uploads/ADV-Part-2A.pdf.