Too Much of a Good Thing: Diversifying Out of a Single Stock Without a Massive Tax Bill
“It really scares me when clients have done really well with a certain stock, and they tell me, ‘There's no way this isn't going to keep doing well.’ That, to me, is a red flag.”
For high earners at tech and growth companies, wealth often arrives not as salary but as equity. It accumulates quietly until a single position dominates the portfolio.
Our hosts, Natalie and Dan Slagle, call this the concentration trap, and with SpaceX going public, a new wave of employees may soon find themselves exactly here.
Enormously wealthy on paper, enormously exposed in practice.
The mechanics are one thing…
The skinny
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