After a long career as a corporate executive, our client had accumulated a large amount of company stock that she had received as part of her annual compensation package. These restricted stock (RSUs) and stock grants now comprised a large percentage of her overall wealth. As she began contemplating her lifestyle in retirement, she became concerned about the lack of diversification in her investment portfolio and the large tax liability due to the low cost basis of the stock.
This case study is hypothetical and for discussion purposes only. It is not intended to represent any specific return, yield or investment. Individual experiences referenced above may not reflect the future experience of any one client. The planning process discussed may not be suitable for your personal situation, even if it is similar to the example presented. Past performance is no guarantee of future results. Investing involves risk including the possible loss of principal. Asset allocation and diversification are investment methods used to help manage risk. They do not guarantee investment returns or eliminate risk of loss including in a declining market. Wells Fargo Advisors Financial Network and Seventy2 Capital are not legal or tax advisors. You should consult with your attorney, accountant and/or estate planner before taking any action. CAR-0820-00265