Wealth Challenges

Dual Strategy Balances Near and Long Term

A C-suite executive in the technology industry came to J.P. Morgan looking for ways to optimize his compensation. He had an existing relationship with a brokerage firm and wanted to maintain control over decisions—though his career left him little time to devote to managing his finances.

In his early 30s, the executive focused most of his energy on his business and earned $1.5 to $2 million each year in salary and stock options. While it can often make sense to exercise stock options and sell the underlying shares, we recommended a different approach.

“A client wanted control though his career left little time for managing his finances.”

We used several proprietary analytical tools to identify options best suited to his situation, from the immediate sale of shares to a “buy and hold” method. Given his younger age and longer time horizon, we recommended a barbell strategy: continue to hold and build the portfolio of company stock, and balance this concentration risk with a more conservative, diversified portfolio.

In this way, he could continue to focus on his career, knowing that this two-pronged approach would both allow his wealth to grow with the success of his career and lay the foundation for his future.

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All case studies are shown for illustrative purposes only and should not be relied upon as advice or interpreted as a recommendation. Results shown are not meant to be representative of actual investment results. Past performance is not necessarily indicative of the likely future performance of an investment.