How to Lose $500K Without the Market Even Dropping
A 4-step system to protect your wealth without killing your upside.
Here's something that'll make you uncomfortable: Many high earners may be more exposed to concentration risk than they realize.
And if you're sitting on a pile of company stock thinking you're wealthy, you might be more exposed than you think.
Today we're covering:
Why your RSUs and stock options may be secretly sabotaging your wealth
The brutal math behind concentration risk (spoiler: it's worse than you think)
A 4-step system to protect your money without killing your upside
How to cut your taxes while cutting your risk
Let's get into it ↓
The Millionaire's Blind Spot That Nobody Talks About
You know what I see all the time? Smart people making money decisions that may not serve their long-term interests.
Tech workers with substantial company stock positions. Doctors holding onto legacy investments. Entrepreneurs who built their wealth on one winner.
On paper? They may look wealthy.
In reality? They could be more exposed than they realize.
Here's the thing about concentration risk: it's not just about having a significant position in one stock. It's about having your entire financial picture tied to one company's performance.
Your paycheck comes from there. Your benefits. Your retirement plan. Your stock options.
That's not diversification - that's having significant exposure to one company's success.
The Math That'll Keep You Up At Night
Let me show you something that most people never calculate.
If 60% of your portfolio is in one stock and that stock drops 40%, you just lost 24% of your entire net worth.
Think about that. The S&P 500 could be having its best year ever, and you're still getting crushed because you decided to play financial Russian roulette.
But here's what's even worse: the emotional damage.
You're not just watching your investment tank. You're watching your employer, your career, and your future all collapse at the same time.
That's not risk management - that's financial suicide.
The Excuses That Are Costing You Millions
Every time I bring this up, I hear the same three excuses:
"I'll sell when it hits my target price."
"The taxes are too high right now."
"It's been good to me so far."
Let me translate those for you:
"I'm going to time the market perfectly." (You won't.)
"I'd rather risk losing everything than pay Uncle Sam." (Brilliant strategy.)
"Past performance guarantees future results." (It doesn't.)
These aren't reasons - they're rationalizations for paralysis.
And paralysis is expensive.
The 4-Step System That Actually Works
Stop making excuses and start making moves. Here's how you manage concentrated stock exposure without being an idiot about it:
Step 1: Set Your Limit
Decide what percentage of your net worth you're willing to keep in one position. Most smart money caps it at 10-15%.
Above that threshold? You trim. No emotions. No exceptions.
Step 2: Automate Everything
Don't rely on your gut or try to time the market. Use systems:
Set up 10b5-1 plans to automate future sales. Schedule quarterly rebalancing. Create price triggers that force action.
Take the human element out of it.
Step 3: Get Smart About Taxes
Yes, taxes suck. You know what sucks more? Losing 50% of your net worth because you were too cheap to pay capital gains.
Here's how you do it right:
Spread sales across multiple tax years. Donate appreciated stock to a Donor-Advised Fund. Harvest losses to offset gains. Gift shares to family members in lower tax brackets.
Step 4: Reinvest Like You Mean It
Diversification isn't about stuffing money under your mattress. It's about intelligent reallocation.
Put the proceeds into broad-market ETFs. Max out your retirement accounts. Build tax-efficient portfolios that align with your actual goals.
Reduce risk without killing growth.
The Hard Truth About Wealth Protection
Here's what most people don't understand: You don't need to sell everything overnight.
But you do need a strategy that doesn't depend on perfect timing or market conditions.
The goal isn't to run from your winner. It's to make sure your future doesn't depend entirely on one company's stock price.
Because here's the reality: every stock goes through cycles. Every company faces challenges. Every winner eventually has a bad year.
The question isn't if your concentrated position will face headwinds - it's when.
Your Move
Stop telling yourself you'll deal with this "later." Later is when the stock is down 40% and you're watching your retirement dreams evaporate.
Build your concentration risk strategy now - before the market does it for you.
Set your exposure limits. Automate your rebalancing. Get strategic with taxes. Reinvest with intention.
Your future self will thank you when everyone else is panicking and you're protected.
Whenever you're ready, there are 2 other ways we can help you:
30-Day Strategy Sprint: Got a specific financial challenge holding you back? In just 30 days, we'll tackle 1-3 of your biggest money roadblocks and hand you a personalized action plan. Perfect if you want expert guidance without a long-term commitment. Limited spots available.
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Opulus, LLC (“Opulus”) is a registered investment advisor in Pennsylvania and other jurisdictions where exempted. Registration as an investment advisor does not imply any specific level of skill or training.
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