Source
Where did the shares come from?
The source can determine what records, restrictions, and professional checks belong in the review.
Worksheet
Concentrated Stock Exposure Check
Build a concentrated-stock exposure profile, then use it to see whether the next step is monitoring, staged diversification, risk reduction, or coordinated professional review.
Exposure profile
Measure the position first
Start with the balance-sheet facts. The same stock value can feel very different against net worth, investable assets, and liquid money available for goals.
$
Use the current value of the single-company position.
$
Include the broader household balance sheet.
$
Include portfolio assets available for allocation decisions.
$
Include money available for spending, taxes, or near-term goals.
Review needed
Share of net worth
25.0%
How much of the full household balance sheet depends on one company.
Review needed
Share of investable assets
33.3%
How much of the investment plan is tied to one stock.
High priority
Share of liquid assets
55.6%
How much spendable or goal-ready wealth depends on this position.
Planning context
Add the facts that can change the sequence
Taxes matter, but they are not the only issue. Sale rules, employer risk, private-company constraints, goal timing, giving, and estate planning can change what should happen first.
Tax
How much tax friction is attached?
Tax cost can shape the pace, but it should not make the risk invisible.
Access
Are there sale restrictions or compliance issues?
Before deciding what to sell, confirm whether the position can be sold at all.
Purpose
What job is this money supposed to do?
A stock position tied to spending, retirement, taxes, debt, or family support has a different urgency.
Coordination
Does the position overlap with giving or estate planning?
Appreciated shares, donor-advised funds, step-up questions, trusts, heirs, and transfers can change the sequence.
Exposure checkpoint board
Where the concentration shows up
A concentrated position is not just a portfolio number. It can affect liquidity, taxes, employment risk, sale access, goals, giving, and estate planning.
Review needed
Net worth exposure
25.0%
The position is large enough to deserve a deliberate review.
Review needed
Portfolio exposure
33.3%
This is enough single-company exposure to review against the target allocation.
High priority
Liquid-asset pressure
55.6%
A large share of liquid wealth depends on the stock, which can create cash-flow pressure.
Lower pressure
Share source
Long-held taxable
Source affects records, restrictions, tax lots, employment risk, and review needs.
Review needed
Tax friction
Moderate gain
Tax cost can shape the schedule, tax lots, gifting choices, and order of operations.
Lower pressure
Sale access
No known restrictions
Trading windows, restricted shares, lockups, private shares, or insider status can control timing.
Review needed
Goal pressure
Retirement or major goal
Near-term spending, retirement, taxes, debt, care, or family support can raise urgency.
Lower pressure
Planning overlap
No special context
Giving, estate, trust, inheritance, or step-up questions can change whether selling comes first.
How to use this worksheet
Use it before taxes, trading rules, or emotional attachment turn a concentrated-stock decision into an all-or-nothing choice.
1
Measure the exposure first
Compare the position with net worth, investable assets, and liquid assets before deciding whether the issue is risk, tax, or access.
2
Add the planning context
Source, tax cost, sale restrictions, goal pressure, giving, and estate questions can change the order of operations.
3
Use the lane as the next review
The result is not a trade recommendation. It points to monitoring, staged diversification, risk reduction, or coordinated review.
About this tool
What this helps you do
This worksheet makes a single-company position visible across the balance sheet, then organizes the planning context that can change what should be reviewed first.
Why context matters
The same percentage can mean different things when the shares are employer equity, inherited stock, private-company shares, restricted stock, or low-basis taxable shares.
How to interpret results
Treat the lane as a planning sequence. It helps separate concentration risk, tax friction, sale restrictions, goal pressure, and professional-review needs.
Limitations
This tool is educational only. It does not recommend buying, selling, holding, gifting, exercising, hedging, or transferring any security, and it does not replace tax, legal, compliance, estate, or investment advice.
Keep learning
Concentrated stock decisions can involve taxes, employer trading windows, restricted shares, private-company liquidity, charitable transfers, estate planning, and securities-law constraints. Confirm the rules before acting on a large or restricted position.