Managing concentrated stock wealth : an advisor's guide to building customized solutions / / Tim Kochis with Michael J. Lewis

• Autore: Kochis Tim
• Pubblicazione: [New York] : , : Bloomberg Press, , [2016]; ©2016
• Edizione: Second edition.
• Descrizione fisica: 1 online resource (232 pages) : illustrations
• Disciplina: 332.6322
• Soggetto topico: Portfolio management; Stocks; Investments; Finance, Personal
• Persona (resp. second.): LewisMichael J.
• Note generali: Includes index.
• Nota di contenuto: Intro -- MANAGING CONCENTRATED STOCK WEALTH -- Contents -- Foreword -- Acknowledgments -- Introduction -- Getting the Priorities Straight -- Knowing the Client -- Chapter Note -- PART I: SALES -- CHAPTER 1 Constraints on Managing Concentration Risk -- Taxes -- Pre-IPO Illiquidity -- Post-IPO Lockups and Other Market Considerations -- SEC Constraints, the Sarbanes-Oxley Act, and Dodd-Frank -- Notice and Reporting -- Controlled Sales of "Founder Stock" -- No Trading on Material, Nonpublic Information -- No "Short-Swing" Profits for Corporate Insiders -- No Favorable Financing for Senior Executives -- Employment/Career Constraints -- Psychological Barriers -- Chapter Notes -- CHAPTER 2 Sale and Diversification -- Overcoming the Tax Constraint -- Overcoming Psychological Barriers -- ESOP Sales -- Pre-IPO Considerations -- Let's Just Sell It -- CHAPTER 3 Coordinating Long Shares with Stock Options -- Employee Stock Options -- Taxes on Options -- Exercise Strategies -- Swapping -- Option Leverage -- Long Shares: No Leverage -- Ordering Rule -- Chapter Note -- CHAPTER 4 Diversification Sales and Deferred-Compensation Plans -- Deferred Compensation: Then and Now -- Sweetening the Pot -- Risks and Returns -- The Rabbi Trust -- Investment Options -- The Benefits of Deferral -- The Coin's Two Sides -- CHAPTER 5 An Out for Insiders -- SEC Rule 10b5-1 Plans -- Third-Party Discretion -- Formula Plans -- Short-Swing Constraints -- Sales During Retirement-Plan Blackout Periods -- Plan Logistics -- Prearranged Plans: Often a Corporate Requirement -- Appendix XYZ Co. Nondiscretionary Rule 10b5-1 Sales Plan -- CHAPTER 6 Restricted Stock: Tackling Temptation -- Managing the Section 83(b) Election -- All That Glitters -- Risk of Forfeiture -- Opportunity Cost -- A Second-Best Strategy -- Seeing the Light -- Complications for Insider -- The Right Fit -- Chapter Note. ; Appendix -- PART II: GIFTS -- CHAPTER 7 Gifts to Family -- Transfer Taxes -- Income Tax Leverage -- Special Rules on Employer Stock -- Transfer Structures -- Gifts Under the Uniform Transfers to Minors Act -- Minor's Trust -- Intentionally Defective Grantor Trusts -- Family Limited Partnerships -- Gaining Psychic Distance -- CHAPTER 8 Nonqualified Stock Options: Gifts to Family -- Investment Leverage -- Tax Leverage -- Timing and Valuation -- CHAPTER 9 Gifts to Charity -- Tax Savings -- The Cost of Charitable Gifts -- Special Income Tax Considerations -- Loss Positions -- Short-Term Gains -- Seasoned Incentive Stock Option Stock -- Low-Basis Shares -- IRA Assets -- Tangible Personal Property -- Structures for Charitable Gifts -- Direct Gifts -- Donor-Advised Funds -- Private Foundations and Supporting Organizations -- A Word of Caution -- Appendix: Key Characteristics of Charitable Vehicles -- CHAPTER 10 Charitable Trusts -- The Charitable Remainder Trust -- Tax Requirements and Opportunities -- Tax Deferral -- Coordinating a CRT with the Client's Financial Plan -- The Charitable Lead Trust -- CHAPTER 11 Nonqualified Stock Options: Gifts to Charity -- The Charitable Gift -- Mismatches of Valuation and Timing -- Why Bother? -- Charities Close to Home -- The Wealth Effect -- PART III: RETENTION -- CHAPTER 12 Margin: An Acquired Taste -- Margined Diversification -- Logistics -- Margin and Liquidity -- Reduced Risk -- Enhanced Return -- The Unexpected -- Margin Calls -- Chapter Notes -- CHAPTER 13 Managing Concentration Through an Index Proxy -- Tax Management -- The Index-Proxy Account -- Managing Concentration Risk -- Limitations and Drawbacks -- Asset-Class Limitations -- Tracking Error -- Higher Expenses -- Deferred Tax Liability -- CHAPTER 14 Exchange Funds -- By Invitation Only -- Costs and Benefits -- The Future of Exchange Funds. ; Stock Protection Funds -- Chapter Notes -- CHAPTER 15 Derivatives and Hedges: Buying Time -- The Versatile Hedge -- Selling Calls -- Changing a Mindset -- Buying Puts -- Collars -- The Put-Spread Collar -- Tax Consequences of Derivatives -- The Forward Contract -- A Competitive Market -- CHAPTER 16 Powers of Concentration -- Embracing Risk -- Corporate Stock-Holding Requirements -- Stock Options: The Decision to Hold -- The Golden-Parachute Constraint -- Capturing Dividends -- Change in Tax Rates -- Incentive Stock Options and the Alternative Minimum Tax -- Gifts of Options -- Charitable Lead Trust -- Company Stock in IRAs or Qualified Retirement Plans -- The Control Premium -- Chapter Note -- Afterword -- About the Author -- About the Contributing Author -- Index -- EULA.
• Sommario/riassunto: 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.
• Titolo autorizzato: Managing concentrated stock wealth
• ISBN: 1-119-13386-6; 1-119-13384-X
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Lingua di pubblicazione: Inglese
• Record Nr.: 9910821606703321
• Lo trovi qui: Univ. Federico II
• Serie: Bloomberg financial series.