Too Much of a Good Thing? What to Do If Most of Your Wealth Is Tied to Company Stock

It’s a good problem to have — until it’s not. If most of your net worth is tied up in your company’s stock, congratulations… and also, watch your step.

Whether you’re an exec at a fast-growing Austin tech firm or someone who’s been at a public company for 20+ years, concentrated stock can be both a wealth builder and a risk multiplier. When the market dips — or your company stumbles — your retirement plan, vacation fund, and kid’s college savings could all take the hit.

Smart Diversification Without Panic

Diversifying doesn’t mean selling everything tomorrow. Tools like 10b5-1 plans allow you to sell on a schedule without triggering insider trading concerns. You might also consider exchange funds or charitable remainder trusts (CRTs) to reduce exposure while managing taxes.

If philanthropy is part of your plan, donor-advised funds (DAFs) let you donate appreciated shares, avoid capital gains, and take an immediate deduction — all while preserving your long-term giving goals.

Sitting on a big stock position and unsure what to do next?

Let’s walk through your options and build a strategy that lowers your risk — without blowing up your tax plan.

Schedule your equity review now.