How Much is Your Concentrated Position Really Benefiting You?

Family wealth often comes from the substantial appreciation, over time, of a single holding. You may have created this wealth or perhaps inherited it. The end result, however, may be that a significant portion of your wealth is tied up in a single asset, exposing you to greater risk and opportunity costs than you may realize.

There are pros and cons to each way you can diversify and mitigate the risks that accompany a large holding. Before deciding on any strategy, it is important to determine what you are trying to accomplish with your assets and to understand how the different investment strategies impact your portfolio and your ability to reach your investment goals.

In How Much is Your Concentrated Position Really Benefiting You?, Klingenstein Fields Advisors (KF Advisors) identifies different types of concentrated holdings and outlines the pros and cons of different diversification alternatives from a liquidity and tax perspective.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personal investment advice. KF Advisors is neither a law firm nor accounting firm, and no portion of its services should be construed as legal or accounting advice. If you are a KF Advisors client, please remember that it remains your responsibility to advise KF Advisors, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. A copy of our current written disclosure statement discussing our advisory services and fees is available upon request or by clicking here. Please read the expanded disclosures in the linked report.