Business executives, administrators and managers are prized clients: they understand business at a high level, but are too busy to manage their own portfolios with the care they deserve. Since their career is itself a major investment, it needs to be included with the rest of their investment portfolios. Everything depends on the beta of their particular industry, and then constructing the rest of the portfolio around it.

Executives in financial services need to be especially careful, since everything about their lives is already leveraged to the stock market. The worst case is a private equity professional. Here he owns a highly leveraged portfolio of companies that are themselves lottery tickets, with both his employment and his financial assets sunk into them at the same time. These individuals should be extremely circumspect when approaching the stock market with surplus capital.

Employee stock and stock options need to be evaluated in the context of the entire portfolio, not set aside as if they didn’t exist. This can be daunting, because the interwoven tax and investment issues are complicated. Conservative Wealth Management LLC is happy to work with you both in designing your portfolio around your options, and in optimizing your execution strategy.