Your Best-Performing Stock Could Be Your Biggest Financial Risk | Client Classroom

What happens when your best-performing investment becomes one of the biggest risks to your financial future? Maybe you've owned the same stock for 20 years. Maybe you've accumulated company shares through stock options, bonuses, or other compensation. Today, that single investment could represent millions of dollars and a significant portion of your net worth. That's a great position to be in. But it also creates some important financial planning considerations. In this week's Client Classroom, John Caserta, CFP®, discusses concentrated stock risk and why having too much wealth invested in one company can become particularly concerning as you approach retirement. In this video, we cover: • Concentrated stock positions: What happens when one investment represents a significant portion of your portfolio. • Capital gains taxes: Why diversifying a highly appreciated stock position isn't always as simple as selling shares. • Tax-aware diversification: Strategies that may help investors gradually reduce concentration while considering the tax implications. • Charitable and estate planning: How appreciated stock may fit into broader wealth transfer and charitable giving strategies. • Retirement planning: Why the investment risk you were comfortable taking while accumulating wealth may not be appropriate once you begin relying on your portfolio for income. • The emotional side of investing: Why selling shares of a company you've believed in or worked for can be difficult. The investment that helped you build your wealth may not be the investment you want to depend on for your entire financial future. Building wealth and protecting wealth aren't always the same thing. Learn more about our financial planning approach and access additional educational resources: 🌐 www.caserta-dejongh.com Caserta & de Jongh, LLC Our Knowledge. Your Vision.® #ConcentratedStock #ConcentratedStockRisk #StockDiversification #FinancialPlanning #RetirementPlanning #CapitalGainsTax #WealthManagement #InvestmentRisk #CompanyStock #ClientClassroom