Managing Substantial Assets Success often brings with it a high level of financial complexity. The tax consequences of each investment decision can become substantial. Without even realizing it, you may have created a potentially substantial tax burden not only for yourself, but also for your heirs.
Assets concentrated in a single stock or business can create risks that deserve expert attention.
More importantly, decisions in one area can have significant consequences in another. Whatever the size of your portfolio, you have the opportunity to diversify assets across different investment styles and asset classes, including more sophisticated investments. By doing so, you can seek to reduce risk and still pursue your investment goals. If your wealth is largely in the form of stock options, or in the control stock of a corporation or restricted stock in an IPO, you may have a substantial net worth and limited ability to enjoy it. There are ways to achieve liquidity without triggering substantial tax consequences, but they require sophisticated credit strategies backed by careful planning.