Diversify her single-stock position, which had a low cost basis and no growth, to a diversified portfolio that also protected her wealth.
True North constructed a three-year, multi-layered plan to diversify the client’s portfolio and achieve her goals. True North actions included:
- Selling one-third of stock
- Hedging one-third of stock in variable forward sale to protect position and delay taxes
- Holding one-third to gift and to sell at opportune times
- Working with client’s CPA to maximize charitable tax carry forward
- Working with client’s estate plan attorney to construct a yearly gifting plan for charitable contributions and to set-up trusts for the next generation
Over the three-year period, True North Advisors was able to replace her dividend income and diversify her portfolio.