Spider graphs for comparing concentrated stock exit strategies

Spider graphs for comparing concentrated stock exit strategies

This is educational content, not investment, tax, or legal advice. Hire an adviser or tax counsel for personalized guidance.

There are two dozen ways to de-risk a concentrated public stock position.

Things like direct indexing, tax-aware long/short, exchange funds, Qualified Opportunity Funds, various options strategies, various gifting strategies, etc.

I have a sortable table on the website that lists them.

taxalphainsider.com

The strategies are so vastly different that a numerical which-one-generated-the-most-after-tax-wealth diagram is insufficient. And this is often why little tools (including my own!) attempting to quantitatively compare strategies feel... kinda meaningless.

The little tools miss the bigger picture.

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Quoted in WSJ, Bloomberg, and Barron’s. Published in The Journal of Wealth Management.