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Managing concentrated stock wealth : an advisor's guide to building customized solutions / Tim Kochis with Michael J. Lewis.
Author
Kochis, Tim
[Browse]
Format
Book
Language
English
Εdition
Second edition.
Published/Created
[New York] : Bloomberg Press, [2016]
©2016
Description
1 online resource (232 pages) : illustrations.
Availability
Available Online
Ebook Central Perpetual, DDA and Subscription Titles
Details
Subject(s)
Portfolio management
[Browse]
Stocks
[Browse]
Investments
[Browse]
Finance, Personal
[Browse]
Author
Lewis, Michael J.
[Browse]
Series
Bloomberg financial series.
[More in this series]
Summary note
The Methodical Compendium of Concentrated Portfolio Options Managing Concentrated Stock Wealth, Second Edition is the adviser's guide to skillfully managing the risk and opportunity presented by concentrated stock holdings. Written by Tim Kochis, a recognized leader in financial planning, this book walks you through twenty strategies for managing concentrated stock wealth. Each strategy equips you with the tools and information you need to preserve and grow your clients' wealth. Supported with examples from the author's forty years of experience, this practical resource shows you the available options, the best order for clients to review those options, and the reasons why some options are better than others. Kochis addresses common obstacles-such as securities law, taxes, and psychological resistance-and shows you the strategies and execution to prevail. This new second edition includes: Updated references, calculations, and illustrations regarding the latest tax laws Revised coverage of derivatives strategies and more examples of potential blind spots Tactics to convince some clients to diversify their portfolios and optimize their wealth Techniques to exploit concentration in pursuance of greater wealth They say that you should never put all of your eggs in one basket, but compensation packages, inheritances, IPOs, buyouts, and other situations leave many investors holding a significant portion of their wealth in one stock-often leaving their portfolios in a dangerous position. Managing Concentrated Stock Wealth, Second Edition shows you how to manage the risks and turn a precarious position into an advantage.
Notes
Includes index.
Source of description
Description based on online resource; title from PDF title page (ebrary, viewed June 7, 2017).
Contents
Intro
MANAGING CONCENTRATED STOCK WEALTH
Contents
Foreword
Acknowledgments
Introduction
Getting the Priorities Straight
Knowing the Client
Chapter Note
PART I: SALES
CHAPTER 1 Constraints on Managing Concentration Risk
Taxes
Pre-IPO Illiquidity
Post-IPO Lockups and Other Market Considerations
SEC Constraints, the Sarbanes-Oxley Act, and Dodd-Frank
Notice and Reporting
Controlled Sales of "Founder Stock"
No Trading on Material, Nonpublic Information
No "Short-Swing" Profits for Corporate Insiders
No Favorable Financing for Senior Executives
Employment/Career Constraints
Psychological Barriers
Chapter Notes
CHAPTER 2 Sale and Diversification
Overcoming the Tax Constraint
Overcoming Psychological Barriers
ESOP Sales
Pre-IPO Considerations
Let's Just Sell It
CHAPTER 3 Coordinating Long Shares with Stock Options
Employee Stock Options
Taxes on Options
Exercise Strategies
Swapping
Option Leverage
Long Shares: No Leverage
Ordering Rule
CHAPTER 4 Diversification Sales and Deferred-Compensation Plans
Deferred Compensation: Then and Now
Sweetening the Pot
Risks and Returns
The Rabbi Trust
Investment Options
The Benefits of Deferral
The Coin's Two Sides
CHAPTER 5 An Out for Insiders
SEC Rule 10b5-1 Plans
Third-Party Discretion
Formula Plans
Short-Swing Constraints
Sales During Retirement-Plan Blackout Periods
Plan Logistics
Prearranged Plans: Often a Corporate Requirement
Appendix XYZ Co. Nondiscretionary Rule 10b5-1 Sales Plan
CHAPTER 6 Restricted Stock: Tackling Temptation
Managing the Section 83(b) Election
All That Glitters
Risk of Forfeiture
Opportunity Cost
A Second-Best Strategy
Seeing the Light
Complications for Insider
The Right Fit
Chapter Note.
Appendix
PART II: GIFTS
CHAPTER 7 Gifts to Family
Transfer Taxes
Income Tax Leverage
Special Rules on Employer Stock
Transfer Structures
Gifts Under the Uniform Transfers to Minors Act
Minor's Trust
Intentionally Defective Grantor Trusts
Family Limited Partnerships
Gaining Psychic Distance
CHAPTER 8 Nonqualified Stock Options: Gifts to Family
Investment Leverage
Tax Leverage
Timing and Valuation
CHAPTER 9 Gifts to Charity
Tax Savings
The Cost of Charitable Gifts
Special Income Tax Considerations
Loss Positions
Short-Term Gains
Seasoned Incentive Stock Option Stock
Low-Basis Shares
IRA Assets
Tangible Personal Property
Structures for Charitable Gifts
Direct Gifts
Donor-Advised Funds
Private Foundations and Supporting Organizations
A Word of Caution
Appendix: Key Characteristics of Charitable Vehicles
CHAPTER 10 Charitable Trusts
The Charitable Remainder Trust
Tax Requirements and Opportunities
Tax Deferral
Coordinating a CRT with the Client's Financial Plan
The Charitable Lead Trust
CHAPTER 11 Nonqualified Stock Options: Gifts to Charity
The Charitable Gift
Mismatches of Valuation and Timing
Why Bother?
Charities Close to Home
The Wealth Effect
PART III: RETENTION
CHAPTER 12 Margin: An Acquired Taste
Margined Diversification
Logistics
Margin and Liquidity
Reduced Risk
Enhanced Return
The Unexpected
Margin Calls
CHAPTER 13 Managing Concentration Through an Index Proxy
Tax Management
The Index-Proxy Account
Managing Concentration Risk
Limitations and Drawbacks
Asset-Class Limitations
Tracking Error
Higher Expenses
Deferred Tax Liability
CHAPTER 14 Exchange Funds
By Invitation Only
Costs and Benefits
The Future of Exchange Funds.
Stock Protection Funds
CHAPTER 15 Derivatives and Hedges: Buying Time
The Versatile Hedge
Selling Calls
Changing a Mindset
Buying Puts
Collars
The Put-Spread Collar
Tax Consequences of Derivatives
The Forward Contract
A Competitive Market
CHAPTER 16 Powers of Concentration
Embracing Risk
Corporate Stock-Holding Requirements
Stock Options: The Decision to Hold
The Golden-Parachute Constraint
Capturing Dividends
Change in Tax Rates
Incentive Stock Options and the Alternative Minimum Tax
Gifts of Options
Charitable Lead Trust
Company Stock in IRAs or Qualified Retirement Plans
The Control Premium
Afterword
About the Author
About the Contributing Author
Index
EULA.
Show 155 more Contents items
ISBN
1-119-13386-6
1-119-13384-X
OCLC
988175221
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