Diversifying a Concentrated Portfolio1

After 40 years as chief counsel, it was time for John to enjoy retirement with his family.

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After a distinguished 40-year career, it was time for John to leave his position as chief counsel for a major manufacturing company and enjoy retirement with his family.

Like many senior executives, John's portfolio contained a concentrated stock position. He wanted to restructure his portfolio to achieve greater diversification and develop an estate plan to help ensure that his children and grandchildren are provided for in the future. Fifth Third Private Bank worked with him to diversify his low-basis stock taking into account his tax exposure2. Together they also created an estate plan, which will provide for his wife in her lifetime, while protecting his legacy for future generations.

 

Make the most of your equity compensation through sophisticated analysis and planning.

If you are a senior executive, you may receive a large part of your compensation as stock options. As a result, your investment portfolio may be highly concentrated in a specific holding and within a particular industry. You may benefit from stock option strategies designed to help you diversify and protect your portfolio.

We can discuss stock option and equity strategies to help you make the most of your options.

 Disclosures

  1. The circumstances surrounding this case study are representative of actual clients of Fifth Third Bank Investment Advisors. To ensure the privacy of our clients, the names and some of the facts have been changed. Recommendations and their results may vary with each client based on their current financial picture and goals. There are no guarantees that any strategy described will perform as expected. Investment results cannot be predicted or forecasted and will vary depending on market conditions.
  2. To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

The information contained herein is for information purposes only, is not designed to address your financial situation or particular needs and does not constitute the rendering of tax or legal advice. You should consult with your tax advisor or attorney for advice pertinent to your personal situation.

Asset Allocation, Alternative Investment and Hedging/Diversification strategies are intended to mitigate the overall risk within your portfolio. Some strategies may be subject to a higher degree of market risk than others. An investor should understand the costs, cash flows and risks inherent in a strategy prior to making any investment decision. There are no guarantees that any strategy presented will perform as intended.

Fifth Third Private Bank is a division of Fifth Third Bank offering banking, investment and insurance products and services. Fifth Third Bancorp provides access to investments and investment services through various subsidiaries, including Fifth Third Securities. Fifth Third Securities is the trade name used by Fifth Third Securities, Inc., member FINRA/SIPC, a registered broker-dealer and registered investment advisor. Registration does not imply a certain level of skill or training.

Investments, investment services and insurance:
Are Not FDIC Insured Offer No Bank Guarantee May Lose Value
Are Not Insured by any Federal Government Agency Are Not a Deposit

Insurance products made available through Fifth Third Insurance Agency, Inc.