Bull Markets | Headed South

UNWINDING CONCENTRATED STOCK COMPENSATION RISK:

In our team communication channels, we have a space that consists of case studies from real clients, which we believe effectively highlights what great planning is supposed to look like. We’re excited to share a few of these externally to help clients better understand key decisions in the planning process (and explain them to others).

Today, we begin our case study series with a look at the issue of employer stock concentration.

• Problem: 15% of a client’s net worth was dependent on their accumulated employer stock.
• Information: How many shares do we need to sell in order to achieve a determined target allocation of 7%?
• Considerations: How do we make a plan to sell the necessary amount of holdings without triggering the next tax bracket?
• Planning Outcome: Watch our team do a walkthrough of the plan here or read the summary here.

*Case study for illustrative/educational purposes only; not a recommendation. Selected to demonstrate planning for concentrated employer stock, based on objective, non‑performance-based criteria. Not representative of all client experiences; individual results vary. Client details are anonymized. Consult your tax/legal advisor for your circumstances.

MARKET CHECK: Another week and more major headlines. There is so much we don’t know, but what we do know: the cyclical bull market is now 41 months old and starting to flatten as the mega cap growers lose their leadership.

It’s always wise to keep history in mind:

LIFESPAN IN THE S&P 500: The average tenure of a company on the S&P Index continues to decline. It’s currently around 15 years. Several factors could contribute to the churn:

• Creative destruction operates more rapidly
• Technological innovation
• M&A and private equity activity more regularly remove large firms from public markets via buyouts or mergers

Source: Apollo Academy

COLLEGE BOUND & HEADED SOUTH: This is interesting. Is it the sweet tea, football, or warmer weather?

ATTENTION SPAN: The data is in, and phones are diminishing our ability to focus. No one is surprised. How is this impacting our relationships, work, creativity, and happiness?

In the words of author, Mark Manson, “Your ancestors survived centuries of floods, wars, famine, slavery, and plagues for you to sit on the toilet and compare your life to people on the internet who you’ve never met. Be grateful.”

*The views expressed represent the opinions of Compass Ion Advisors, LLC, as of the date noted and are subject to change. These views are not intended as a forecast, a guarantee of future results, an investment recommendation, or an offer to buy or sell any securities. The information provided is of a general nature and should not be construed as investment advice or to provide any investment, tax, financial, or legal advice or service to any person. The information contained has been compiled from sources deemed reliable, yet accuracy is not guaranteed.

Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website here. Past performance is not a guarantee of future results.