{"product_id":"managing-concentrated-stock-wealth-isbn-9781119131588","title":"Managing Concentrated Stock Wealth","description":"\u003cb\u003eThe Methodical Compendium of Concentrated Portfolio Options\u003c\/b\u003e \u003cp\u003e\u003ci\u003eManaging Concentrated Stock Wealth, Second Edition\u003c\/i\u003e is the adviser's guide to skillfully managing the risk and opportunity presented by concentrated stock holdings. Written by Tim Kochis, a recognized leader in financial planning, this book walks you through twenty strategies for managing concentrated stock wealth. Each strategy equips you with the tools and information you need to preserve and grow your clients' wealth. Supported with examples from the author's forty years of experience, this practical resource shows you the available options, the best order for clients to review those options, and the reasons why some options are better than others. Kochis addresses common obstacles—such as securities law, taxes, and psychological resistance—and shows you the strategies and execution to prevail. \u003c\/p\u003e\u003cp\u003eThis new second edition includes: \u003c\/p\u003e\u003cul\u003e \u003cli\u003eUpdated references, calculations, and illustrations regarding the latest tax laws\u003c\/li\u003e \u003cli\u003eRevised coverage of derivatives strategies and more examples of potential blind spots\u003c\/li\u003e \u003cli\u003eTactics to convince some clients to diversify their portfolios and optimize their wealth\u003c\/li\u003e \u003cli\u003eTechniques to exploit concentration in pursuance of greater wealth\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eThey say that you should never put all of your eggs in one basket, but compensation packages, inheritances, IPOs, buyouts, and other situations leave many investors holding a significant portion of their wealth in one stock—often leaving their portfolios in a dangerous position. \u003ci\u003eManaging Concentrated Stock Wealth, Second Edition\u003c\/i\u003e shows you how to manage the risks and turn a precarious position into an advantage. \u003c\/p\u003e\u003cp\u003eForeword xiii\u003c\/p\u003e \u003cp\u003eAcknowledgments xvii\u003c\/p\u003e \u003cp\u003eIntroduction xix\u003c\/p\u003e \u003cp\u003eGetting the Priorities Straight xix\u003c\/p\u003e \u003cp\u003eKnowing the Client xxi\u003c\/p\u003e \u003cp\u003eChapter Note xxiii\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart I: Sales\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 Constraints on Managing Concentration Risk 3\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTaxes 4\u003c\/p\u003e \u003cp\u003ePre‐IPO Illiquidity 8\u003c\/p\u003e \u003cp\u003ePost‐IPO Lockups and Other Market Considerations 8\u003c\/p\u003e \u003cp\u003eSEC Constraints, the Sarbanes‐Oxley Act, and Dodd‐Frank 10\u003c\/p\u003e \u003cp\u003eNotice and Reporting 10\u003c\/p\u003e \u003cp\u003eControlled Sales of “Founder Stock” 11\u003c\/p\u003e \u003cp\u003eNo Trading on Material, Nonpublic Information 11\u003c\/p\u003e \u003cp\u003eNo “Short‐Swing” Profits for Corporate Insiders 11\u003c\/p\u003e \u003cp\u003eNo Favorable Financing for Senior Executives 12\u003c\/p\u003e \u003cp\u003eEmployment\/Career Constraints 12\u003c\/p\u003e \u003cp\u003ePsychological Barriers 14\u003c\/p\u003e \u003cp\u003eChapter Notes 17\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Sale and Diversification 19\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eOvercoming the Tax Constraint 21\u003c\/p\u003e \u003cp\u003eOvercoming Psychological Barriers 24\u003c\/p\u003e \u003cp\u003eESOP Sales 25\u003c\/p\u003e \u003cp\u003ePre‐IPO Considerations 26\u003c\/p\u003e \u003cp\u003eLet’s Just Sell It 27\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 Coordinating Long Shares with Stock Options 29\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEmployee Stock Options 30\u003c\/p\u003e \u003cp\u003eTaxes on Options 32\u003c\/p\u003e \u003cp\u003eExercise Strategies 35\u003c\/p\u003e \u003cp\u003eSwapping 40\u003c\/p\u003e \u003cp\u003eOption Leverage 40\u003c\/p\u003e \u003cp\u003eLong Shares: No Leverage 42\u003c\/p\u003e \u003cp\u003eOrdering Rule 42\u003c\/p\u003e \u003cp\u003eChapter Note 43\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Diversification Sales and Deferred‐Compensation Plans 45\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eDeferred Compensation: Then and Now 46\u003c\/p\u003e \u003cp\u003eSweetening the Pot 47\u003c\/p\u003e \u003cp\u003eRisks and Returns 48\u003c\/p\u003e \u003cp\u003eThe Rabbi Trust 51\u003c\/p\u003e \u003cp\u003eInvestment Options 52\u003c\/p\u003e \u003cp\u003eThe Benefits of Deferral 52\u003c\/p\u003e \u003cp\u003eThe Coin’s Two Sides 54\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 An Out for Insiders 55\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSEC Rule 10b5‐1 Plans 56\u003c\/p\u003e \u003cp\u003eThird‐Party Discretion 57\u003c\/p\u003e \u003cp\u003eFormula Plans 57\u003c\/p\u003e \u003cp\u003eShort‐Swing Constraints 58\u003c\/p\u003e \u003cp\u003eSales During Retirement‐Plan Blackout Periods 58\u003c\/p\u003e \u003cp\u003ePlan Logistics 58\u003c\/p\u003e \u003cp\u003ePrearranged Plans: Often a Corporate Requirement 59\u003c\/p\u003e \u003cp\u003eAppendix XYZ Co. Nondiscretionary Rule 10b5‐1 Sales Plan 59\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Restricted Stock: Tackling Temptation 67\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eManaging the Section 83(b) Election 68\u003c\/p\u003e \u003cp\u003eAll That Glitters 69\u003c\/p\u003e \u003cp\u003eRisk of Forfeiture 71\u003c\/p\u003e \u003cp\u003eOpportunity Cost 72\u003c\/p\u003e \u003cp\u003eA Second‐Best Strategy 74\u003c\/p\u003e \u003cp\u003eSeeing the Light 75\u003c\/p\u003e \u003cp\u003eComplications for Insider 76\u003c\/p\u003e \u003cp\u003eThe Right Fit 77\u003c\/p\u003e \u003cp\u003eChapter Note 80\u003c\/p\u003e \u003cp\u003eAppendix 80\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart II: Gifts\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Gifts to Family 85\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTransfer Taxes 85\u003c\/p\u003e \u003cp\u003eIncome Tax Leverage 89\u003c\/p\u003e \u003cp\u003eSpecial Rules on Employer Stock 90\u003c\/p\u003e \u003cp\u003eTransfer Structures 90\u003c\/p\u003e \u003cp\u003eGifts Under the Uniform Transfers to Minors Act 91\u003c\/p\u003e \u003cp\u003eMinor’s Trust 91\u003c\/p\u003e \u003cp\u003eIntentionally Defective Grantor Trusts 92\u003c\/p\u003e \u003cp\u003eFamily Limited Partnerships 94\u003c\/p\u003e \u003cp\u003eGaining Psychic Distance 95\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Nonqualified Stock Options: Gifts to Family 97\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInvestment Leverage 98\u003c\/p\u003e \u003cp\u003eTax Leverage 99\u003c\/p\u003e \u003cp\u003eTiming and Valuation 100\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 9 Gifts to Charity 105\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTax Savings 105\u003c\/p\u003e \u003cp\u003eThe Cost of Charitable Gifts 107\u003c\/p\u003e \u003cp\u003eSpecial Income Tax Considerations 109\u003c\/p\u003e \u003cp\u003eLoss Positions 109\u003c\/p\u003e \u003cp\u003eShort‐Term Gains 109\u003c\/p\u003e \u003cp\u003eSeasoned Incentive Stock Option Stock 110\u003c\/p\u003e \u003cp\u003eLow‐Basis Shares 110\u003c\/p\u003e \u003cp\u003eIRA Assets 111\u003c\/p\u003e \u003cp\u003eTangible Personal Property 111\u003c\/p\u003e \u003cp\u003eStructures for Charitable Gifts 112\u003c\/p\u003e \u003cp\u003eDirect Gifts 112\u003c\/p\u003e \u003cp\u003eDonor‐Advised Funds 112\u003c\/p\u003e \u003cp\u003ePrivate Foundations and Supporting Organizations 114\u003c\/p\u003e \u003cp\u003eA Word of Caution 115\u003c\/p\u003e \u003cp\u003eAppendix: Key Characteristics of Charitable Vehicles 116\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 10 Charitable Trusts 119\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Charitable Remainder Trust 120\u003c\/p\u003e \u003cp\u003eTax Requirements and Opportunities 121\u003c\/p\u003e \u003cp\u003eTax Deferral 122\u003c\/p\u003e \u003cp\u003eCoordinating a CRT with the Client’s Financial Plan 123\u003c\/p\u003e \u003cp\u003eThe Charitable Lead Trust 125\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 11 Nonqualified Stock Options: Gifts to Charity 129\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Charitable Gift 130\u003c\/p\u003e \u003cp\u003eMismatches of Valuation and Timing 131\u003c\/p\u003e \u003cp\u003eWhy Bother? 132\u003c\/p\u003e \u003cp\u003eCharities Close to Home 133\u003c\/p\u003e \u003cp\u003eThe Wealth Effect 134\u003c\/p\u003e \u003cp\u003e\u003cb\u003ePart III: Retention\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 12 Margin: An Acquired Taste 137\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eMargined Diversification 138\u003c\/p\u003e \u003cp\u003eLogistics 138\u003c\/p\u003e \u003cp\u003eMargin and Liquidity 140\u003c\/p\u003e \u003cp\u003eReduced Risk 141\u003c\/p\u003e \u003cp\u003eEnhanced Return 141\u003c\/p\u003e \u003cp\u003eThe Unexpected 145\u003c\/p\u003e \u003cp\u003eMargin Calls 147\u003c\/p\u003e \u003cp\u003eChapter Notes 148\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 13 Managing Concentration Through an Index Proxy 149\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTax Management 149\u003c\/p\u003e \u003cp\u003eThe Index‐Proxy Account 150\u003c\/p\u003e \u003cp\u003eManaging Concentration Risk 151\u003c\/p\u003e \u003cp\u003eLimitations and Drawbacks 153\u003c\/p\u003e \u003cp\u003eAsset‐Class Limitations 153\u003c\/p\u003e \u003cp\u003eTracking Error 153\u003c\/p\u003e \u003cp\u003eHigher Expenses 154\u003c\/p\u003e \u003cp\u003eDeferred Tax Liability 154\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 14 Exchange Funds 157\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBy Invitation Only 157\u003c\/p\u003e \u003cp\u003eCosts and Benefits 158\u003c\/p\u003e \u003cp\u003eThe Future of Exchange Funds 160\u003c\/p\u003e \u003cp\u003eStock Protection Funds 160\u003c\/p\u003e \u003cp\u003eChapter Notes 162\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 15 Derivatives and Hedges: Buying Time 163\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Versatile Hedge 164\u003c\/p\u003e \u003cp\u003eSelling Calls 164\u003c\/p\u003e \u003cp\u003eChanging a Mindset 165\u003c\/p\u003e \u003cp\u003eBuying Puts 168\u003c\/p\u003e \u003cp\u003eCollars 170\u003c\/p\u003e \u003cp\u003eThe Put‐Spread Collar 171\u003c\/p\u003e \u003cp\u003eTax Consequences of Derivatives 171\u003c\/p\u003e \u003cp\u003eThe Forward Contract 172\u003c\/p\u003e \u003cp\u003eA Competitive Market 174\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 16 Powers of Concentration 175\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eEmbracing Risk 175\u003c\/p\u003e \u003cp\u003eCorporate Stock‐Holding Requirements 177\u003c\/p\u003e \u003cp\u003eStock Options: The Decision to Hold 179\u003c\/p\u003e \u003cp\u003eThe Golden‐Parachute Constraint 180\u003c\/p\u003e \u003cp\u003eCapturing Dividends 181\u003c\/p\u003e \u003cp\u003eChange in Tax Rates 181\u003c\/p\u003e \u003cp\u003eIncentive Stock Options and the Alternative Minimum Tax 182\u003c\/p\u003e \u003cp\u003eGifts of Options 183\u003c\/p\u003e \u003cp\u003eCharitable Lead Trust 184\u003c\/p\u003e \u003cp\u003eCompany Stock in IRAs or Qualified Retirement Plans 184\u003c\/p\u003e \u003cp\u003eThe Control Premium 186\u003c\/p\u003e \u003cp\u003eChapter Note 188\u003c\/p\u003e \u003cp\u003eAfterword 189\u003c\/p\u003e \u003cp\u003eAbout the Author 193\u003c\/p\u003e \u003cp\u003eAbout the Contributing Author 195\u003c\/p\u003e \u003cp\u003eIndex 197\u003c\/p\u003e  \u003cp\u003e\u003cb\u003eTIM KOCHIS\u003c\/b\u003e is the CEO of Kochis Global, a firm he founded to advance best-in-class wealth management and investment planning services, especially in the emerging economies of Asia. He pioneered the independent model in the U.S. financial services industry, chaired every professional organization in his field, received every achievement award his profession confers over more than 40 years, and directly provided personal financial planning services to thousands of clients at Bank of America, Deloitte, and Aspiriant. \u003c\/p\u003e\u003cp\u003e\u003cb\u003eMICHAEL J. LEWIS\u003c\/b\u003e is the Director of Wealth Strategies at Vernal Point Advisors. Michael previously worked at Aspiriant from 2008–2015, where he served as a wealth manager for high net worth and family office clients, and was deeply involved in developing the firm's systems and intellectual property. At Vernal Point Advisors, Michael focuses on areas of concentrated wealth management, executive compensation optimization, and family office services.    \u003c\/p\u003e\u003cp\u003eConcentrated stock positions are among the oldest and most familiar issues faced by financial advisors. They will likely be part of the job as long as entrepreneurs create new wealth, and stock, options, and other stock-based measures are part of executive compensation. \u003ci\u003eManaging Concentrated Stock Wealth \u003c\/i\u003eis the advisor's guide to skillfully managing the risk and the opportunity presented by concentrated stock holdings.  \u003c\/p\u003e\u003cp\u003eWritten by Tim Kochis, a recognized leader in financial planning, this \u003ci\u003eSecond Edition\u003c\/i\u003e walks you through 20 strategies for managing concentrated stock wealth—organized from easiest to more complex—to demonstrate best practice for approaching this special financial concern. Each strategy equips you with the tools and information you need to preserve and grow your clients' wealth. Supported with examples from the author's more than 40 years of experience, this practical resource shows you the most current tactics, how best to present a client's choices, and the reasons why some are better than others. Kochis addresses common obstacles—such as securities law, taxes, and psychological resistance—and shows you the strategies to overcome them. This updated and revised edition includes:  \u003c\/p\u003e\u003cul\u003e \u003cli\u003eUp-to-date references, calculations, and illustrations based on the latest tax laws\u003c\/li\u003e \u003cli\u003eEnhanced coverage of derivatives strategies and more extensive coverage of \"pre-public\" tactics\u003c\/li\u003e \u003cli\u003eEffective approaches for convincing reluctant or skeptical clients that diversifying their portfolios can better optimize their wealth\u003c\/li\u003e \u003cli\u003eThe latest, proven techniques for exploiting stock wealth concentration to achieve opportunistic strategies\u003c\/li\u003e \u003c\/ul\u003e  \u003cp\u003eStandard investment wisdom says never put all of your eggs in one basket, but compensation packages, inheritances, IPOs, buyouts, and the like leave many investors holding a significant portion of their wealth in one stock—often leaving their portfolios in a dangerously risky position. \u003ci\u003eManaging Concentrated Stock Wealth\u003c\/i\u003e, \u003ci\u003eSecond Edition\u003c\/i\u003e shows you how to manage the risks or turn an apparently precarious position into an advantage.  \u003c\/p\u003e\u003cp\u003e\u003ci\u003eManaging Concentrated Stock Wealth, Second Edition\u003c\/i\u003e is the authoritative guide to the full range of choices financial advisors have to manage their clients' concentrated stock wealth both to reduce risk and to maximize opportunity. This practitioner's go-to resource of strategies and tools shows what actually works. Fresh coverage takes you through the ins and outs of how concentration presents opportunities for preserving, and growing, wealth. This revised edition presents an insider's look at why there's more opportunity than ever to profitably serve clients.      \u003c\/p\u003e\u003cp\u003eConcentrated stock positions are among the oldest and most familiar issues faced by financial advisors. They will likely be part of the job as long as entrepreneurs create new wealth, and stock, options, and other stock-based measures are part of executive compensation. \u003ci\u003eManaging Concentrated Stock Wealth\u003c\/i\u003e is the advisor's guide to skillfully managing the risk and the opportunity presented by concentrated stock holdings. \u003c\/p\u003e\u003cp\u003eWritten by Tim Kochis, a recognized leader in financial planning, this \u003ci\u003eSecond Edition\u003c\/i\u003e walks you through 20 strategies for managing concentrated stock wealth—organized from easiest to more complex—to demonstrate best practice for approaching this special financial concern. Each strategy equips you with the tools and information you need to preserve and grow your clients' wealth. Supported with examples from the author's more than 40 years of experience, this practical resource shows you the most current tactics, how best to present a client's choices, and the reasons why some are better than others. Kochis addresses common obstacles—such as securities law, taxes, and psychological resistance—and shows you the strategies to overcome them. This updated and revised edition includes: \u003c\/p\u003e\u003cul\u003e \u003cli\u003eUp-to-date references, calculations, and illustrations based on the latest tax laws\u003c\/li\u003e \u003cli\u003eEnhanced coverage of derivatives strategies and more extensive coverage of \"pre-public\" tactics\u003c\/li\u003e \u003cli\u003eEffective approaches for convincing reluctant or skeptical clients that diversifying their portfolios can better optimize their wealth\u003c\/li\u003e \u003cli\u003eThe latest, proven techniques for exploiting stock wealth concentration to achieve opportunistic strategies\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003eStandard investment wisdom says never put all of your eggs in one basket, but compensation packages, inheritances, IPOs, buyouts, and the like leave many investors holding a significant portion of their wealth in one stock—often leaving their portfolios in a dangerously risky position. \u003ci\u003eManaging Concentrated Stock Wealth\u003c\/i\u003e, \u003ci\u003eSecond Edition\u003c\/i\u003e shows you how to manage the risks or turn an apparently precarious position into an advantage. \u003c\/p\u003e\u003cp\u003e\u003ci\u003eManaging Concentrated Stock Wealth, Second Edition\u003c\/i\u003e is the authoritative guide to the full range of choices financial advisors have to manage their clients' concentrated stock wealth both to reduce risk and to maximize opportunity. This practitioner's go-to resource of strategies and tools shows what actually works. Fresh coverage takes you through the ins and outs of how concentration presents opportunities for preserving, and growing, wealth. This revised edition presents an insider's look at why there's more opportunity than ever to profitably serve clients.\u003c\/p\u003e","brand":"Bloomberg Press","offers":[{"title":"Default Title","offer_id":47989563719909,"sku":"NP9781119131588","price":75.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119131588.jpg?v=1761784613","url":"https:\/\/k12savings.com\/es\/products\/managing-concentrated-stock-wealth-isbn-9781119131588","provider":"K12savings","version":"1.0","type":"link"}