Estate Planning Red Flag – A significant portion of your wealth is concentrated in a single stock
Abstract: Estate planning and investment risk management go hand in hand. After all, an estate plan is effective only if a person has some wealth to transfer to the next generation. One of the most effective strategies for reducing the investment risk is to diversify the holdings. But it’s not unusual for affluent people to end up with a significant portion of their wealth concentrated in one or two stocks. This brief article explains why this can be problematic.