Who we help
Investing for senior executives and company directors
Executives often have much of their wealth tied to one company: salary, bonus, shares and options. That is a lot of eggs in one basket, however good the basket.
The challenges
- Large holdings in your employer through share schemes or options.
- Dealing restrictions and closed periods that limit when you can sell.
- Bonuses that arrive as lump sums once or twice a year.
- Little time to manage money, and a lot of people offering to do it for a fee.
How a disciplined process helps
Plan how you will reduce concentration
Decide the maximum share of your wealth you are comfortable holding in one company, then set a schedule for reducing it within your dealing rules. A plan made in advance takes emotion and timing out of it.
Always follow your company’s rules on dealing and seek professional advice on tax.
Give every bonus a job
Before a bonus arrives, decide how much goes to spending, how much to cash reserves and how much to long-term investments. Then invest that portion with the same rules every time.
This turns an irregular income into a steady investing habit.
Review the whole picture
Look at pensions, ISAs, share schemes and cash together. The question is how all of it behaves if your industry has a bad year.
Our portfolio review gives an educational view of diversification and costs.
Where to start
- Free portfolio reviewSend your holdings for an educational review of what you own and what it costs.
- Guide: What works in investingThe research behind a factor-based, rules-driven approach.
- S&P 500 concentrationShould the Magnificent Seven worry you?
- Guide: Do you need an adviser?When advice is worth paying for, and when a process of your own may be enough.
Questions people ask
Should I sell my company shares?
We do not give personal recommendations. The educational point is that concentration increases risk; how and when you reduce it depends on your circumstances, rules and tax position.
Can I invest during closed periods?
Your company’s dealing rules apply to its own shares. Speak to your company secretary or compliance team before dealing.
Is this only for FTSE executives?
No. The same principles apply to directors of private companies and senior staff anywhere with large bonuses or equity.
Important: this page is education and information only. It is not financial advice or a personal recommendation, and it does not take your circumstances into account. The value of investments and pensions can fall as well as rise, and you may get back less than you put in. Past performance is not a reliable indicator of future results. If you are unsure what is right for you, speak to a regulated financial adviser.