Concentrated Positions
Many clients come to us with a large position in a single stock or asset. This often comes from equity compensation, a business exit, or long term leadership at a major company. A concentrated position can create both opportunity and risk, and managing it well requires more than simple diversification. It also requires careful tax planning, since the timing and structure of each decision can significantly affect long term outcomes.
Scholar Advising specializes in helping clients strategically manage these positions while preserving what makes your story, your equity, and your goals unique.
Strategic Options for Your Position
Every concentrated position is different. Some families want to preserve upside while managing volatility. Others want a long term plan for reducing exposure in a tax aware way.
We guide clients through strategies such as gradual selling, 10b5-1 plans, hedging and structured solutions, as well as gifting and charitable planning that can turn a single holding into long term financial strength.
A Broader Perspective
Our clients value having a team that can evaluate a concentrated position with the same rigor used across their full portfolio. We consider investment risk, taxes, estate planning, liquidity needs, and generational objectives together, not in isolation.
Whether your wealth comes from a public company, private business, or upcoming liquidity event, our role is to provide objective guidance that supports long term financial independence for your family.
Concentration Strategy in Practice
Tech Equity Windfall: Strategic Planning for the Mitchells’ Charitable and Family Goals
Current State of Finances
Ethan and Claire Mitchell, a married couple in their mid-40s, have reached a pivotal financial moment. Ethan works for a rapidly growing tech company and recently experienced a substantial equity event tied to an early grant of stock options and RSUs. Between his and Claire’s salaries, their annual household income sits above $750,000. The couple currently rents their primary residence but owns undeveloped land in a more rural region where they plan to build a long-term home. They also have a modest seasonal property abroad for family getaways…
Concentration Risk and Retirement Readiness: A Tax-Efficient Diversification Plan for Ellen Parker
Current State of Finances
Ellen Parker, a successful executive in her early 60s, was preparing to retire after a long career with a publicly traded company. Her investment portfolio totaled just under $12 million, but more than $7.5 million of that was held in her 401(k)—with the majority concentrated in her company’s stock. The position had grown steadily over the years, and while it reflected years of loyalty and success, it now posed a serious risk to her retirement plan…
Executive Transition: Designing a Purpose-Driven Retirement for the Carters
Current State of Finances
Mr. and Mrs. Carter, recent retirees, have stepped away from high-powered executive careers and are now focused on crafting a retirement life that aligns with their values. Mrs. Carter recently retired as CEO of a major national chain, while Mr. Carter built his career in finance. The couple has amassed a considerable portfolio, including approximately $20 million in cash savings and $15 million in invested assets. Much of Mrs. Carter’s current holdings are tied up in individual company stock from her former employer…
Conversations on Concentration
For deeper insight into how we approach concentrated position strategy, explore relevant episodes of the Scholar Wealth Podcast.
What’s Next?
We provide financial planning and advice. All new client relationships begin with a comprehensive initial plan. Fill out our online form below to receive a complimentary personalized proposal within two to three business days.