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 FAQ
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.
