EconomymultigenerationalReal EstateSANTA CLARA COUNTYWealth May 11, 2022

Why Diversifying Your Concentrated Portfolio Is A Smart Move

The Bay Area is a hub for many industries, including tech, and investors here often find themselves with a concentrated portfolio due to restricted stock grants and incentive stock options. If this describes you, take note: Diversifying your investments can be a smart move.
Lynne MacFarlane Blog - What does job market mean to real estate market?
Silicon Valley tech employees have been jolted by their stock options performance lately. At Intero Los Altos’ Monday office meeting, our title company rep brought up a point reminding us that in 2009, people who sold their stocks to buy residential real estate have done very, very well!
The Bay Area has historically been home to many companies that offer stock incentives to high-level executives. If you’re a leader in one of those companies, you may hold far too high of a percentage of wealth in your employer or previous employer’s stock. Here’s a recent article which considers the recent plunge in technology shares providing investors with a harsh lesson in that can hamper employee retention and threaten cash flow when share prices collapse.
“As stock prices fall, companies may have to offer employees even more shares to achieve the same compensation levels.” Here are companies that heavily rely on employee stock rewards.
Having a large percentage of your holdings in a single company can help you build wealth quickly when that company is on the rise. However, that same volatility can wipe you out if something goes wrong.
It may seem counterintuitive to cash out stock options now. Nobody wishes to cash in when their stocks are plummeting, but remember that nobody wants to let go of their stock when it is skyrocketing either. Real estate is a safer haven during times of inflation. It appreciates over time and it’s tangible. There are many ways to profit from real estate, from cash flow of rental properties to
appreciation of assets.
Consider balancing your asset class portfolio and cash out. Why not buy a multigenerational house? Think of an extra guest space for relatives visiting, building an ADU, or buying a property under $800K (I can suggest several areas). Real Estate can create passive income with lower volatility and that might be the right move for you.
Let me know if you would like a no pressure introduction to our financial wealth advisors providing Intero concierge service and advice before making any financial decisions.
Also please keep in mind that I’m always available to help your family/friends with any real estate or financial questions.
Lynne Watanabe MacFarlane, Realtor
Intero | Berkshire Hathaway affiliate
408-800-1141 or 831-346-2743
SANTA CLARA COUNTYWealth June 10, 2021

Seven Diversification Tools: How to Navigate Your Concentrated Portfolio

I’m reaching out to extend an invitation to a live webinar that may be of interest to you. The topic is called “Risk vs. Reward: How to navigate a concentrated portfolio”.

Stock grants, typically RSUs, have become a more significant portion of Bay Area employee compensation plans. You may be vesting stock on a monthly, quarterly or annual basis while also participating in ESPP programs – increasing the concentration of your stock positions. Many Bay Area companies’ stock prices have done exceptionally well over recent years, resulting in “the best problem to have” (big wealth with big tax implications).

If you’re like the many Bay Area residents in this position, you’re wondering how to optimize your position, diversify your portfolio, minimize taxes, and avoid the penalties and interest you’ve been paying at tax time.
Our partner Summitry is a local wealth management firm uniquely adept at addressing the financial concerns of Bay Area residents.

Join us for the Seven Diversification Tools webinar, June 23, Noon – 1pm.

RSVP here: http://bit.ly/7DiversificationTools-FreeSeminar

Diversify Assets - Webinar