The Challenge: When success becomes a source of stress.

For advisors like Ian Wymore, Principal Senior Wealth Manager of Compound Planning, helping clients navigate the upside of equity compensation is a recurring challenge. "A lot of your wealth is tied up in this one company," he explains. "And if that stock takes a nosedive, then so does your wealth."

The risk is more than theoretical. JP Morgan's analysis of Russell 3000 stocks between 1980 and 2014 found that about 40% of all stocks suffered a permanent 70% or worse decline from their peak value. For clients caught in that unlucky cohort, the impact goes far beyond their portfolio.

<p class="blog_disclosures-text">Ian Wymore and Compound Planning are not current Cache clients but collaborate with Cache on behalf of their clients. Their experience may not be representative of the experience of others and is not a guarantee of future performance or success. A conflict of interest exists in that the advisor has a business relationship with Cache. The advisor was not compensated for the testimonial. Compound is not affiliated with Cache.</p>

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It's not just about exposure. It's about emotion. 

"If we have a significant piece of our wealth tied up in a single company, we're gonna be checking in on that stock every day that the markets are open," Wymore says. "On the good days, we're feeling really good, but on the bad days, it can really negatively impact our emotions. That's gonna bleed into your relationships with your spouse, your kids, your friends, your coworkers."

Despite the emotional and financial volatility, many clients hesitate to diversify. Why? 

"Nearly the entire position represents capital gain," Wymore explains. "So if they're going to sell the asset to diversify it, oftentimes they're looking at paying taxes against nearly the entire asset's value."

The Solution: Diversification without the tax drag

Cache Exchange Funds offered Ian Wymore and his clients a direct, advisor-friendly way to break the cycle of risk and reluctance. "It's hard to argue with being able to diversify your position without having a huge tax bill upfront," says Wymore.

The benefit is clear in the numbers. "If you had a million dollars in the direct selling approach versus a million dollars in the exchange fund approach, you can invest that entire million dollars, diversify it in a growth-oriented, diversified portfolio. But in the direct selling approach, whatever you have left over after paying a usually very large tax bill is what you can invest."

Why Cache: A platform built for advisors

For Wymore, Cache stands out for its clarity and client alignment. With over $700M+ AUM across our funds, Cache has proven scale in the exchange fund market.

Easy access: "The team at Cache has been very easy to communicate with, very easy to get a hold of."

Real-time capacity tools: "It also really helps that they have a great website where I can go on and actually check to see how much of a specific stock they might be able to accept for their next fund close."

Advisor-friendly pricing: "Their fees are reasonable and quite competitive for the space."

Strategic Fit

Who benefits most from exchange funds? Wymore is clear: this isn't a product for everyone. 

"You're still going to have a growth-oriented stock portfolio. Obviously, it’s a lot less risky than a concentrated stock position, but nonetheless, you have to have the risk tolerance for a stock portfolio."

He typically recommends Cache to clients who:

• Have significant wealth tied up in a single stock
• Can afford to wait seven years for liquidity
• Want a tax-efficient path to diversification without full liquidation
  
  

The Advisor's Take

Don't let inertia win. Wymore sees inaction as the most significant risk of all: "If you are dealing with a concentrated stock position, it's really easy to just get caught up in inaction and not doing anything about it... Things can really go south quickly, whether it's the actual financials or it's the emotions involved with the concentrated stock position."

For advisors serving high-net-worth clients with significant equity positions, Cache offers a practical, tax-aware solution and the operational support to implement it with confidence.

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