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The Nile on eBay Managing Concentrated Stock Wealth by Tim Kochis, Michael J. Lewis 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. FORMAT Hardcover LANGUAGE English CONDITION Brand New Publisher Description 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. Back Cover Concentrated stock positions are among the oldest and most familiar issues faced by financial advisors. They will likely be part of the job as long as entrepreneurs create new wealth, and stock, options, and other stock-based measures are part of executive compensation. Managing Concentrated Stock Wealth is the advisor's guide to skillfully managing the risk and the opportunity presented by concentrated stock holdings. Written by Tim Kochis, a recognized leader in financial planning, this Second Edition walks you through 20 strategies for managing concentrated stock wealth--organized from easiest to more complex--to demonstrate best practice for approaching this special financial concern. 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 more than 40 years of experience, this practical resource shows you the most current tactics, how best to present a client's choices, and the reasons why some are better than others. Kochis addresses common obstacles--such as securities law, taxes, and psychological resistance--and shows you the strategies to overcome them. This updated and revised edition includes: Up-to-date references, calculations, and illustrations based on the latest tax laws Enhanced coverage of derivatives strategies and more extensive coverage of "pre-public" tactics Effective approaches for convincing reluctant or skeptical clients that diversifying their portfolios can better optimize their wealth The latest, proven techniques for exploiting stock wealth concentration to achieve opportunistic strategies Standard investment wisdom says never put all of your eggs in one basket, but compensation packages, inheritances, IPOs, buyouts, and the like leave many investors holding a significant portion of their wealth in one stock--often leaving their portfolios in a dangerously risky position. Managing Concentrated Stock Wealth , Second Edition shows you how to manage the risks or turn an apparently precarious position into an advantage. Managing Concentrated Stock Wealth, Second Edition is the authoritative guide to the full range of choices financial advisors have to manage their clients' concentrated stock wealth both to reduce risk and to maximize opportunity. This practitioner's go-to resource of strategies and tools shows what actually works. Fresh coverage takes you through the ins and outs of how concentration presents opportunities for preserving, and growing, wealth. This revised edition presents an insider's look at why there's more opportunity than ever to profitably serve clients. Flap Concentrated stock positions are among the oldest and most familiar issues faced by financial advisors. They will likely be part of the job as long as entrepreneurs create new wealth, and stock, options, and other stock-based measures are part of executive compensation. Managing Concentrated Stock Wealth is the advisor's guide to skillfully managing the risk and the opportunity presented by concentrated stock holdings. Written by Tim Kochis, a recognized leader in financial planning, this Second Edition walks you through 20 strategies for managing concentrated stock wealth--organized from easiest to more complex--to demonstrate best practice for approaching this special financial concern. 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 more than 40 years of experience, this practical resource shows you the most current tactics, how best to present a client's choices, and the reasons why some are better than others. Kochis addresses common obstacles--such as securities law, taxes, and psychological resistance--and shows you the strategies to overcome them. This updated and revised edition includes: Up-to-date references, calculations, and illustrations based on the latest tax laws Enhanced coverage of derivatives strategies and more extensive coverage of "pre-public" tactics Effective approaches for convincing reluctant or skeptical clients that diversifying their portfolios can better optimize their wealth The latest, proven techniques for exploiting stock wealth concentration to achieve opportunistic strategies Standard investment wisdom says never put all of your eggs in one basket, but compensation packages, inheritances, IPOs, buyouts, and the like leave many investors holding a significant portion of their wealth in one stock--often leaving their portfolios in a dangerously risky position. Managing Concentrated Stock Wealth , Second Edition shows you how to manage the risks or turn an apparently precarious position into an advantage. Managing Concentrated Stock Wealth, Second Edition is the authoritative guide to the full range of choices financial advisors have to manage their clients' concentrated stock wealth both to reduce risk and to maximize opportunity. This practitioner's go-to resource of strategies and tools shows what actually works. Fresh coverage takes you through the ins and outs of how concentration presents opportunities for preserving, and growing, wealth. This revised edition presents an insider's look at why there's more opportunity than ever to profitably serve clients. Author Biography TIM KOCHIS is the CEO of Kochis Global, a firm he founded to advance best-in-class wealth management and investment planning services, especially in the emerging economies of Asia. He pioneered the independent model in the U.S. financial services industry, chaired every professional organization in his field, received every achievement award his profession confers over more than 40 years, and directly provided personal financial planning services to thousands of clients at Bank of America, Deloitte, and Aspiriant. MICHAEL J. LEWIS is the Director of Wealth Strategies at Vernal Point Advisors. Michael previously worked at Aspiriant from 2008–2015, where he served as a wealth manager for high net worth and family office clients, and was deeply involved in developing the firm's systems and intellectual property. At Vernal Point Advisors, Michael focuses on areas of concentrated wealth management, executive compensation optimization, and family office services. Table of Contents Foreword xiii Acknowledgments xvii Introduction xix Getting the Priorities Straight xix Knowing the Client xxi Chapter Note xxiii Part I: Sales Chapter 1 Constraints on Managing Concentration Risk 3 Taxes 4 PreIPO Illiquidity 8 PostIPO Lockups and Other Market Considerations 8 SEC Constraints, the SarbanesOxley Act, and DoddFrank 10 Notice and Reporting 10 Controlled Sales of "Founder Stock" 11 No Trading on Material, Nonpublic Information 11 No "ShortSwing" Profits for Corporate Insiders 11 No Favorable Financing for Senior Executives 12 Employment/Career Constraints 12 Psychological Barriers 14 Chapter Notes 17 Chapter 2 Sale and Diversification 19 Overcoming the Tax Constraint 21 Overcoming Psychological Barriers 24 ESOP Sales 25 PreIPO Considerations 26 Let's Just Sell It 27 Chapter 3 Coordinating Long Shares with Stock Options 29 Employee Stock Options 30 Taxes on Options 32 Exercise Strategies 35 Swapping 40 Option Leverage 40 Long Shares: No Leverage 42 Ordering Rule 42 Chapter Note 43 Chapter 4 Diversification Sales and DeferredCompensation Plans 45 Deferred Compensation: Then and Now 46 Sweetening the Pot 47 Risks and Returns 48 The Rabbi Trust 51 Investment Options 52 The Benefits of Deferral 52 The Coin's Two Sides 54 Chapter 5 An Out for Insiders 55 SEC Rule 10b51 Plans 56 ThirdParty Discretion 57 Formula Plans 57 ShortSwing Constraints 58 Sales During RetirementPlan Blackout Periods 58 Plan Logistics 58 Prearranged Plans: Often a Corporate Requirement 59 Appendix XYZ Co. Nondiscretionary Rule 10b51 Sales Plan 59 Chapter 6 Restricted Stock: Tackling Temptation 67 Managing the Section 83(b) Election 68 All That Glitters 69 Risk of Forfeiture 71 Opportunity Cost 72 A SecondBest Strategy 74 Seeing the Light 75 Complications for Insider 76 The Right Fit 77 Chapter Note 80 Appendix 80 Part II: Gifts Chapter 7 Gifts to Family 85 Transfer Taxes 85 Income Tax Leverage 89 Special Rules on Employer Stock 90 Transfer Structures 90 Gifts Under the Uniform Transfers to Minors Act 91 Minor's Trust 91 Intentionally Defective Grantor Trusts 92 Family Limited Partnerships 94 Gaining Psychic Distance 95 Chapter 8 Nonqualified Stock Options: Gifts to Family 97 Investment Leverage 98 Tax Leverage 99 Timing and Valuation 100 Chapter 9 Gifts to Charity 105 Tax Savings 105 The Cost of Charitable Gifts 107 Special Income Tax Considerations 109 Loss Positions 109 ShortTerm Gains 109 Seasoned Incentive Stock Option Stock 110 LowBasis Shares 110 IRA Assets 111 Tangible Personal Property 111 Structures for Charitable Gifts 112 Direct Gifts 112 DonorAdvised Funds 112 Private Foundations and Supporting Organizations 114 A Word of Caution 115 Appendix: Key Characteristics of Charitable Vehicles 116 Chapter 10 Charitable Trusts 119 The Charitable Remainder Trust 120 Tax Requirements and Opportunities 121 Tax Deferral 122 Coordinating a CRT with the Client's Financial Plan 123 The Charitable Lead Trust 125 Chapter 11 Nonqualified Stock Options: Gifts to Charity 129 The Charitable Gift 130 Mismatches of Valuation and Timing 131 Why Bother? 132 Charities Close to Home 133 The Wealth Effect 134 Part III: Retention Chapter 12 Margin: An Acquired Taste 137 Margined Diversification 138 Logistics 138 Margin and Liquidity 140 Reduced Risk 141 Enhanced Return 141 The Unexpected 145 Margin Calls 147 Chapter Notes 148 Chapter 13 Managing Concentration Through an Index Proxy 149 Tax Management 149 The IndexProxy Account 150 Managing Concentration Risk 151 Limitations and Drawbacks 153 AssetClass Limitations 153 Tracking Error 153 Higher Expenses 154 Deferred Tax Liability 154 Chapter 14 Exchange Funds 157 By Invitation Only 157 Costs and Benefits 158 The Future of Exchange Funds 160 Stock Protection Funds 160 Chapter Notes 162 Chapter 15 Derivatives and Hedges: Buying Time 163 The Versatile Hedge 164 Selling Calls 164 Changing a Mindset 165 Buying Puts 168 Collars 170 The PutSpread Collar 171 Tax Consequences of Derivatives 171 The Forward Contract 172 A Competitive Market 174 Chapter 16 Powers of Concentration 175 Embracing Risk 175 Corporate StockHolding Requirements 177 Stock Options: The Decision to Hold 179 The GoldenParachute Constraint 180 Capturing Dividends 181 Change in Tax Rates 181 Incentive Stock Options and the Alternative Minimum Tax 182 Gifts of Options 183 Charitable Lead Trust 184 Company Stock in IRAs or Qualified Retirement Plans 184 The Control Premium 186 Chapter Note 188 Afterword 189 About the Author 193 About the Contributing Author 195 Index 197 Long Description PRAISE FOR MANAGING CONCENTRATED STOCK WEALTH "We learned a great deal from reviewing this work! The book not only gives a wonderful technical explanation, but perhaps even more importantly, it shares real world tradeoffs and some of the behavioral traps that are seldom addressed in the technical literature. Managing Concentrated Stock Wealth presents a great guide for optimizing the complex world of concentrated positions: whether to reduce the risk or to cultivate the opportunity that these very common situations present." Mark Balasa and Armond Dinverno, Co-CEO's, Balasa Dinverno Foltz, LLC "This book is an outstanding resource for financial advisors, but is also a must for their clients. My family and I have benefited greatly as a result of our work with Tim and his associates. Together, we've made excellent decisions for our future, including, of course, making smart moves about concentrated stock positions I was fortunate to have." G. Kirk Raab, former President & COO, Abbott Labs and former President & CEO, Genentech; currently at work with a number of pre-public and newly public Biotech companies "Like an expert partner sitting on your shelf, Tim Kochis's book is just waiting to navigate you through your client's concentrated stock issues. Tim has a talent for taking complicated information and synthesizing it into understandable and actionable strategies. He's my favorite resource, always willing to share his knowledge and experience, and this book is one of his best." Deena Katz, CFP Details ISBN 1119131588 Series Bloomberg Financial Year 2016 ISBN-10 1119131588 ISBN-13 9781119131588 Format Hardcover Subtitle An Advisor's Guide to Building Customized Solutions Edition 2nd Country of Publication United States Illustrations illustrations DEWEY 332.6322 Short Title MANAGING CONCENTRATED STOCK WE Language English Media Book Pages 240 Author Michael J. Lewis UK Release Date 2016-02-26 NZ Release Date 2016-01-15 Publisher Bloomberg Press Edition Description 2nd edition Publication Date 2016-02-26 Imprint Bloomberg Press Place of Publication Princeton Replaces 9781576601778 Audience Professional & Vocational US Release Date 2016-02-26 AU Release Date 2016-01-14 We've got this At The Nile, if you're looking for it, we've got it. With fast shipping, low prices, friendly service and well over a million items - you're bound to find what you want, at a price you'll love! TheNile_Item_ID:136207757;