Note: Wealthfront is no longer accepting new Selling Plan clients. However, we will keep these articles online for clients with existing plans.
Selling Plan addresses a common problem for employees, ex-employees, and investors in public companies — holding a concentrated position in a single stock.
Having a significant portion of net worth in a single stock means that you can experience extreme fluctuations in your net worth on a daily basis. It also exposes you to significant risk based on the activities and unforeseen events that occur at your company, rather than spreading that risk across a broad set of companies and markets through the time-honored investing process of diversification.
Selling Plan allows you to transfer your vested and exercised shares to Wealthfront, where they can be sold in an easy, commission-free, and tax-aware manner.
You can set aside cash for taxes and other uses and, if you want, reinvest the remaining proceeds in a Wealthfront diversified portfolio. This will leave you with a less volatile investment portfolio, suitable to grow long-term wealth.
Wealthfront prepared this article for informational purposes and not as an offer, recommendation, or solicitation to buy or sell any security. Wealthfront and its affiliates may rely on information from various sources we believe to be reliable (including clients and other third parties), but cannot guarantee its accuracy or completeness. See our Full Disclosure for more important information.
Wealthfront and its affiliates do not provide tax advice and investors are encouraged to consult with their personal tax advisor. Financial advisory and planning services are only provided to investors who become clients by way of a written agreement. All investing involves risk, including the possible loss of money you invest. Past performance does not guarantee future performance.