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Concentrated Stock Portfolio Consulting & Risk Management

Author: Tom Bowman, CFA CFP®

Last Edited: August 1, 2025

Comprehensive Financial Strategies for Mid-Career Professionals


Have too much in one stock? We help high-income investors and executives reduce risk, hedge exposure, and unlock value with tax-smart strategies. Schedule a consultation today.

Concentrated Stock Consultation


Concentrated stock portfolio consulting & risk management. Reduce risk, diversify wisely, and protect your future.

If a large portion of your wealth is tied to a single stock—whether through RSUs, IPOs, inheritance, or long-term investment—you may be facing more risk than you realize. At Investors Portfolio Services, we specialize in concentrated stock portfolio consulting and risk management, providing fiduciary guidance to help you manage volatility, avoid major tax mistakes, and strategically diversify without disrupting your financial plan.

What is a concentrated stock position?

A concentrated stock position occurs when a single stock makes up a significant portion—often more than 10–20%—of your overall investable assets. This creates a lack of diversification that increases exposure to:

  • Sudden price drops
  • Sector-specific risks
  • Company-specific scandals or disruption
  • Emotional decision-making and behavioral traps

Strategies to Manage Concentrated Stock Risk

We tailor solutions based on your goals, time horizon, and tax profile. Our concentrated stock consulting includes:

  • Tax-Smart Diversification

Avoid unnecessary tax burdens by creating a gradual liquidation plan using tax-loss harvesting, standard deduction thresholds, and customized 10b5‑1 plans.

  • Protective Collars & Options Overlays

Use call and put options to limit downside while preserving upside potential. These strategies can often be implemented in a tax-deferred or brokerage account.

  • Direct Indexing & Custom SMAs

Build diversified portfolios with embedded tax optimization. This allows you to shift exposure away from a single stock while maintaining desired market factors.

  • Exchange Funds

Pool your shares with other investors to defer gains and receive a diversified basket—ideal for highly appreciated holdings.

  • Charitable Trusts (CRTs)

Reduce concentrated risk while meeting philanthropic goals and gaining income tax deductions.

Who we serve

Our clients include:

  • Tech executives with RSUs, ESPPs, or stock options
  • Entrepreneurs post-IPO or acquisition
  • Long-term investors with low-basis shares
  • Families with legacy positions or inherited stock
  • Business owners transitioning to retirement

We work best with investors who want long-term financial planning—not just transactions.

Why Choose Investors Portfolio Services

✅ Fiduciary, independent advice
✅ Over 20 years of experience working with high-income professionals
✅ Deep tax planning integration
✅ Personalized, low-conflict guidance
✅ Direct access to CFP® and CFA® professionals

Frequently Asked Questions

Q: How much of my portfolio is too much in one stock?

A: Generally, anything above 10–20% of your total investable assets in one position is considered excessive and increases risk.


Q: How can I hedge my stock without selling it?

A: Protective collars, prepaid forwards, and options overlays allow you to manage downside without triggering taxes.


Q: Will I owe capital gains tax if I diversify?

A: Possibly, but we can structure the transition over time, using tax-loss harvesting and strategies like exchange funds or CRTs to defer or offset gains.


Q: What if I want to keep my stock long term?

A: We’ll help you evaluate the risk and use tools like collars or charitable planning to help reduce exposure without immediate sale.


Schedule a Complimentary Consultation

If your financial future is tied to a single stock, it’s time to take control.
We’ll help you navigate the tax, risk, and opportunity in your concentrated holdings.


 Schedule an Appointment