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Stock impact report

As tech stocks soar, executives use exchange funds to diversify wealth without selling [CNBC]

Northern Trust Corporation (NTRS) 
Last northern trust corporation earnings: 4/21 07:29 am Check Earnings Report
Company Research Source: CNBC
Key Points Rather than selling stock to reinvest, shareholders can use exchange funds to diversify and defer capital gains taxes. Investment strategists to the wealthy said the funds can be a tool for wealth transfer, but getting clients to hedge their bets is often a hard proposition. Yuichiro Chino | Moment | Getty Images For executives and founders who have gotten rich off one stock, sometimes it is possible to have too much of a good thing. While the tech stock boom has meant a windfall for employees at high-flying companies, it's risky to have too much of your net worth tied up in one stock. Some advisors ascribe to a 10% rule of thumb — meaning no one stock or asset should make up more than 10% of a portfolio. “It represents both the biggest risk and biggest opportunity for that client,” said Rob Romano, head of capital markets investor solutions at Merrill. Founders and long-time employees who want to diversify their portfolios can face steep capital gains taxes Show less Read more
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