Concentrated Stock Strategies
Unlock opportunities and manage the risks associated with having concentrated stock
Whether your stock holdings are the result of hard work, smart investing or a family legacy, a Merrill advisor can help you put the right strategies in place to unlock potential opportunities and manage the risks.
When a significant portion of your investment portfolio is made up of a single stock or a few stocks, it is considered concentrated. This concentration can present risks since the value of these stocks can fluctuate more dramatically compared to a diversified portfolio with many different types of investments.
Manage the risks
Over time, the performance of companies and industries shifts — and no one can predict the future winners. When you have concentrated stock, it’s important to have strategies in place to manage the risk of concentration of your portfolios’ long-term performance.
Diversify your portfolio
Having a large portion of your wealth tied up in a single or handful of stocks means you aren’t getting the benefits of diversification. However, there are strategies that can use your concentrated stock to create a more diversified portfolio which may provide better risk-adjusted returns over time.1
Fund your lifestyle
Investing isn’t just about funding long-term goals. Sometimes you need to access cash from your portfolio to fund a more immediate need. Having the right strategies in place to access liquidity can help you avoid costly mistakes such as having to sell when the stock price is down.
A comprehensive approach for your investments
Your concentrated stock position is just one aspect of your wealth. A Merrill advisor can provide comprehensive support and guidance for the total you, helping you to:
Connect your life and finances, making the path toward your goals clearer even as life and the world around you changes.
Access personalized advice powered by data-driven insights to help you make more informed decisions.
Take action with Merrill investing and Bank of America banking solutions, as well as additional specialized expertise.
Get forward-looking perspectives and investment insights that help you make progress towards your goals.
Explore the opportunities with a Merrill advisor
Everyone’s situation is different. There’s no one-size-fits-all solution. A Merrill advisor can help you explore the full range of concentrated stock strategies and decide which one best suits your liquidity, risk management, diversification, wealth transfer and tax-efficiency needs.
To learn more, talk to your Merrill advisor. Or, if you don’t have one, enter your information below to connect to an advisor.
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