""Your real problem here is a diversification problem. You've got one company, it's 30% of your total savings, which is arguably way too much.""
""You don't want to go into retirement and say, okay, I'm going to have this account fund me, and then the next thing you know, the stock's down 30%, 40%, 50%.""
""Moss's approach reduces concentration risk without forcing a large taxable event in any single year.""
Billy, 45, plans to retire at 55 but faces a diversification issue with 30% of his investments in RSUs. Financial advisor Wes Moss warns that this concentration poses significant risks, as a single stock can dramatically affect retirement savings. Moss suggests reducing RSU exposure to 10-15% by selling $150,000 worth and reinvesting in a diversified brokerage account. This strategy mitigates concentration risk while avoiding large tax implications, as Billy's tax-advantaged accounts are already maxed out.
Read at 24/7 Wall St.
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