Maximize Your Concentrated Stock Holdings

Unlock the full potential of your concentrated stock positions without the need to sell. Lyons Wealth provides tailored strategies to help you mitigate risks and optimize returns. Discover our expertise.

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Strategy Overview

Effectively managing your concentrated stock positions is crucial for minimizing risks and maximizing returns. We collaborate with you to develop customized strategies tailored to your specific challenges. Our key approaches include:

  • Diversifying your portfolio to mitigate risk
  • Protecting against losses with put options
  • Generating income with a collar strategy
  • Utilizing variable prepaid forward contracts
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Lyons Wealth Can Help You Make the Most of Your Concentrated Stock Position

What Is a Concentrated Stock Position?

A concentrated stock position occurs when a significant portion of an individual’s wealth is tied up in a single stock or a limited number of stocks. Understanding the ins and outs of it is essential for investors who want to make informed decisions and effectively manage the associated risks and rewards.

Concentrated stock positions have benefits, risks, and strategies you can employ to manage and diversify. Additionally, we will describe the tax implications and strategies associated with these positions, ensuring you have a comprehensive understanding of how to navigate the complexities of concentrated stock investments.

Why You Should Invest

Handling a concentrated stock position requires a comprehensive approach that includes evaluating the associated risks, developing a diversification strategy, trading options, and considering tax implications. Working with a financial professional, can help you create a personalized plan to effectively manage your concentrated stock position while aligning with your overall financial goals and risk tolerance.

At Lyon’s Wealth, our mission is to empower investors like you to harness the full potential of your concentrated stock position. With our expert guidance, personalized strategies, and commitment to your financial success, we’re ready to help you transform your investments into a more diversified, resilient, and tax-efficient portfolio.

Diversifying These Positions

We regularly assist clients in diversifying their concentrated stock position to mitigate risk and enhance the overall performance of stock shares in their portfolios. Here are four practical strategies for diversifying concentrated stock:

  • Dollar-Cost Averaging
    By periodically investing a fixed amount of money into a diversified portfolio, you can reduce the average cost per share over time and minimize the impact of the stock market and fluctuations on your investment. This strategy can help you gradually shift from a concentrated position to a more diversified one.
  • Investing in Exchange-Traded Funds (ETFs) or Mutual Funds
    ETFs and mutual funds offer instant diversification by pooling your investment with those of other investors and allocating the funds across a broad range of assets. By using broad equity market and investing in these financial instruments together, you can effectively reduce your exposure to a concentrated stock position.
  • Asset Allocation
    By strategically allocating your investments across different asset classes, such as stocks, bonds, real estate, and alternative investments, you can create a more balanced and diversified portfolio. This approach helps to spread risk and reduces the impact of poor performance in any single asset class.
  • Sector Diversification
    Concentrated stock positions often result in a lack of diversification across different sectors of the economy. By investing in stocks or funds that focus on various industries, you can reduce sector-specific risks and create a more balanced portfolio.

Handling Taxes

Managing the tax implications is crucial to optimizing investment outcomes and preserving wealth. It is essential to understand the tax consequences of selling, gifting, or donating shares, as well as the strategies available for minimizing tax liabilities while still effectively managing your investments. That’s why it’s so important to work with a financial advisor to develop a tax-efficient strategy for managing concentrated stock positions.

Lyons Wealth advisors will help you navigate the complexities of the tax landscape and make informed decisions that optimize your investment outcomes and preserve your wealth.

Meet Your Wealth Managers

“Continuity should be one of the main factors when you look into investing with a financial advisor or wealth manager.”

Sander Read

President & Chief Executive Officer

31 Years Managing Wealth

“The big hurdle is the lack of support for recovering passwords, keys, and digital asset locations, making pre-planning crucial.”

Corey Roun

Sr. Director of Trading & Derivatives Strategies

15 Years with Lyons Wealth

“We have a fiduciary duty to always put clients’ interests first, we only do better, when you do better.”

Matt Ferratusco

Senior Portfolio Manager & Analyst

9 Years with Lyons Wealth

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Who We Work With

At Lyons Wealth, we get to know our clients to understand their specific goals, objectives, needs, and future desires. We look for a good fit for everyone involved and want to engage in long-term relationships with the clients we advise. Our client roster ranges from:

  • Multi-Generational Wealthy Families
  • Corporate Executives with Concentrated Stock Holdings
  • Successful Individuals
  • Business Owners
  • Fiduciaries of Charitable Funds
  • Investment Professionals
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“Working with Lyons has been amazing. The team is professional and communicative so I always know how my investments are doing.”

Daniel S
Business Owner

“I’ve been with Lyons Wealth for years and my advisor has always been great about communication and account management. Can’t say enough good things.”

Jaime B
Successful Individual

“Lyons Wealth Management helped educate me and allay my fears, as well as provided solid guidance on steps I could take to help me reach my goals even sooner.”

Dorothy P
Successful Individual

Start Investing With Lyons Wealth Today!

Schedule a call with a financial advisor to discuss how Lyons Wealth can help you manage your concentrated stock position!

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