Explore Javier's story.*

See how Schwab Wealth Advisory™ could potentially help investors like Javier thoughtfully diversify concentrated stock, balance growth with income needs, and structure support for his family in alignment with his long-term goals.

A man smiles while crossing his arms. Speech bubbles beside him read: “How do I diversify a concentrated position?”, “What’s the best way to support my family over time?”

About Javier

A circular photo of the same man smiling, wearing a white shirt. Below the photo are three icons: a file folder, an umbrella and sunshine image, and a group of people.

Meet Javier*, a recently retired technology executive living in California with $25 million in assets. After a long and successful career, Javier is looking ahead to the next chapter—one where he can enjoy the freedom he's earned while helping those closest to him.

Javier has one adult son and a close-knit extended family, including many nieces and nephews he hopes to support over time. With a large portion of his wealth concentrated in his former company's stock, Javier grew concerned about how a sharp swing in one investment could affect not just his retirement, but the people he hoped to support over time. As he shifted from building wealth to preserving it, he wanted guidance on how to diversify thoughtfully—without losing sight of future growth or tax considerations. His questions included:

  • How can I reduce exposure to my concentrated stock position?
  • How do I balance growth and income in retirement?
  • What long-term strategies can I use to support family members over time?

To help bring clarity and structure to his planning, we worked closely with Javier to evaluate the benefits and potential consequences of different approaches, then brought in the right Schwab specialists to explore options that matched his goals.

*These scenarios are for illustrative purposes only, are not the experience of any specific clients, and are no guarantee of future performance or success.

NOTE: Certain services may be provided by affiliated professionals and third-party firms. Schwab Wealth Advisory does not provide specific individualized legal or tax advice. Please consult a qualified legal or tax advisor where such advice is necessary or appropriate.

Diversifying concentrated positions

Having worked at one firm for many years, Javier* had accumulated a significant number of company shares. With his recent retirement and goal of supporting his extended family over time, he wanted to reduce his concentrated position while thoughtfully managing the tax and market trade-offs involved.

How Schwab Wealth Advisory helped

We started by discussing his long-term goals and risk appetite, focusing on how much of his concentrated position he wanted to keep, how much to sell, and how to structure transfers or gifting as part of his broader plan to achieve those goals. We determined that certain options strategies could be beneficial, so we brought in an Options Specialist to evaluate approaches that balanced potential tax efficiency with the trade-offs of timing, income, and future upside.

  • The Options Specialist designed a strategy using covered calls across a portion of Javier's shares, with a range of strike prices and expiration dates aligned to his broader goals. This approach allowed him to potentially generate premium income while also creating a disciplined path to gradually reduce his position over time, as shares were called away at target prices.
     
  • As part of this strategy, Javier accepted trade-offs, including capping some future upside and the possibility of shares being called away prior to expiration.
     
  • He also explored whether a Charitable Remainder Trust (CRT) could help him generate income while supporting long-term philanthropic goals.
     
  • After identifying assets to liquidate, we discussed Schwab Personalized Indexing® as a way to reinvest proceeds into an index-tracking strategy along with tax-loss harvesting to help manage and potentially offset some of the gains from selling the stock.

We also helped Javier identify the portion of company stock he wanted to hold long-term and moved those assets into a separate trust account outside of Schwab Wealth Advisory. This allowed him to preserve those assets for legacy or future planning purposes—without affecting the active strategies managed within Schwab Wealth Advisory—while still giving him the option to bring them in later if desired.

Javier kept $20 million with Schwab Wealth Advisory, spread across multiple account types, including a trust designed for cash flow needs and an IRA. His portfolio was allocated across a diversified mix of separately managed accounts, municipal bonds, ETFs, and alternative investments to align with his income and growth goals.

Together, these strategies reflected a set of intentional trade-offs Javier was comfortable making to pursue diversification, income generation, and a long-term plan to support the people that matter most to him.

*These scenarios are for illustrative purposes only, are not the experience of any specific clients, and are no guarantee of future performance or success.

Contact your Schwab Financial Consultant or connect with us to learn more.

Let's talk

Retirement income

With retirement underway, Javier* wanted confidence that he could support his lifestyle without needing to rely on concentrated stock or timing the market. He was looking for a steady income plan that gave him flexibility and reduced risk.

How Schwab Wealth Advisory helped

We worked with Javier to build a retirement income strategy that worked with his goals and asset mix:

  • A portion of his assets was allocated to income-generating investments, including municipal bonds and a dividend-focused separately managed account.
     
  • Income was allocated across multiple accounts—including trusts and IRAs—to provide flexibility for day-to-day spending along with the enhanced compounding of returns in the retirement accounts.
     
  • The plan was structured to support planned spending needs and periodic family support without disrupting his broader financial strategy.

With an intentional and flexible income strategy, Javier felt more at ease managing his financial life—so he could confidently enjoy retirement on his terms.

*These scenarios are for illustrative purposes only, are not the experience of any specific clients, and are no guarantee of future performance or success.

Ease your transition into retirement.

See how we can help make the transition into retirement less stressful and more exciting.

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The Charles Schwab logo and Wealth Advisory logo appear on an all-white screen. The title reads Professional Wealth Management on Your Terms.

Upbeat music plays throughout.

The logos and text fade away to show Schwab Wealth Advisor, Susan Poss, CFP®, CWS®, seated on a couch.

When clients are transitioning from those working years into retirement, it's a very exciting time because this is when they can reclaim their time and find a new purpose.

They have accumulated assets and now they have this beautiful nest egg and they often face mental hurdles with how are they going to start tapping into those retirement sources and go into the decumulation phase in retirement.

My name is Susan Poss. I'm a Senior Wealth Advisor and I've been with Schwab for almost 24 years.

One of my dear clients, right now she's 72 and she is a bundle of energy. She is terrific. She has this lust for life and over time we've had these conversations of what does retirement mean to her?

We worked on various retirement scenarios and as we engaged in the planning process, it provided her with different choices in retirement.

So as we were together, she finally got the nudge from me and she put in her notice. She loved what she did, but she was ready to pursue her passions. She had a bucket list, she wanted to buy a camping trailer, put her two dogs in there, and start camping around.

She also wanted to do kayaking, learn photography. So she had a lot of other hobbies that she wanted to pursue. She took the plunge. She retired and we continue to work together, and make sure that she is able to afford a comfortable retirement.

In essence, what I was trying to help her see that she has accumulated this massive amount of net worth. So let's transfer that net worth into her net fulfillment in retirement.

The screen fades to white and the following disclosures fade onto the screen:

Schwab Wealth Advisory™ ("SWA") is a non‐discretionary investment advisory program sponsored by Charles Schwab & Co., Inc. ("Schwab"). Schwab Wealth Advisory, Inc. ("SWAI") is a Registered Investment Adviser and provides portfolio management for the SWA program. Schwab and SWAI are affiliates and are subsidiaries of The Charles Schwab Corporation.

Portfolio Management provided by Schwab Wealth Advisory, Inc., a Registered Investment Adviser and affiliate of Charles Schwab & Co., Inc. (Schwab). Please read the Schwab Wealth Advisory and the Schwab Wealth Advisory, Inc. Disclosure Brochures for information and disclosures about this program. The Wealth Advisor, Associate Wealth Advisor, and other representatives making investment recommendations in your Schwab Wealth Advisory accounts are employees of Schwab Wealth Advisory, Inc.

This information provided here is for general informational purposes only and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.

Information provided herein is for general information purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.

Financial Planning consultations are conducted by employees of Schwab Wealth Advisory, Inc. ("SWAI") or Charles Schwab & Co., Inc. ("Schwab") depending on the complexity of your financial situation. SWAI and Schwab are Registered Investment Advisors and wholly owned subsidiaries of the Charles Schwab Corporation.

Certain services may be provided by affiliated professionals and third-party firms. Schwab Wealth Advisory does not provide specific individualized legal or tax advice. Please consult a qualified legal or tax advisor where such advice is necessary or appropriate.

Asset allocation and diversification strategies do not ensure a profit and do not protect against losses in declining markets.

© Charles Schwab & Co, Inc., Member SIPC. All rights reserved.

(0924-KPP9)
Video Transcript

Transitioning into retirement

The Charles Schwab logo and Wealth Advisory logo appear on an all-white screen. The title reads Professional Wealth Management on Your Terms.

Upbeat music plays throughout.

The logos and text fade away to show Schwab Wealth Advisor, Susan Poss, CFP®, CWS®, seated on a couch.

When clients are transitioning from those working years into retirement, it's a very exciting time because this is when they can reclaim their time and find a new purpose.

They have accumulated assets and now they have this beautiful nest egg and they often face mental hurdles with how are they going to start tapping into those retirement sources and go into the decumulation phase in retirement.

My name is Susan Poss. I'm a Senior Wealth Advisor and I've been with Schwab for almost 24 years.

One of my dear clients, right now she's 72 and she is a bundle of energy. She is terrific. She has this lust for life and over time we've had these conversations of what does retirement mean to her?

We worked on various retirement scenarios and as we engaged in the planning process, it provided her with different choices in retirement.

So as we were together, she finally got the nudge from me and she put in her notice. She loved what she did, but she was ready to pursue her passions. She had a bucket list, she wanted to buy a camping trailer, put her two dogs in there, and start camping around.

She also wanted to do kayaking, learn photography. So she had a lot of other hobbies that she wanted to pursue. She took the plunge. She retired and we continue to work together, and make sure that she is able to afford a comfortable retirement.

In essence, what I was trying to help her see that she has accumulated this massive amount of net worth. So let's transfer that net worth into her net fulfillment in retirement.

The screen fades to white and the following disclosures fade onto the screen:

Schwab Wealth Advisory™ ("SWA") is a non‐discretionary investment advisory program sponsored by Charles Schwab & Co., Inc. ("Schwab"). Schwab Wealth Advisory, Inc. ("SWAI") is a Registered Investment Adviser and provides portfolio management for the SWA program. Schwab and SWAI are affiliates and are subsidiaries of The Charles Schwab Corporation.

Portfolio Management provided by Schwab Wealth Advisory, Inc., a Registered Investment Adviser and affiliate of Charles Schwab & Co., Inc. (Schwab). Please read the Schwab Wealth Advisory and the Schwab Wealth Advisory, Inc. Disclosure Brochures for information and disclosures about this program. The Wealth Advisor, Associate Wealth Advisor, and other representatives making investment recommendations in your Schwab Wealth Advisory accounts are employees of Schwab Wealth Advisory, Inc.

This information provided here is for general informational purposes only and is not intended to be a substitute for specific individualized tax, legal, or investment planning advice. Where specific advice is necessary or appropriate, you should consult with a qualified tax advisor, CPA, Financial Planner, or Investment Manager.

Information provided herein is for general information purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.

Financial Planning consultations are conducted by employees of Schwab Wealth Advisory, Inc. ("SWAI") or Charles Schwab & Co., Inc. ("Schwab") depending on the complexity of your financial situation. SWAI and Schwab are Registered Investment Advisors and wholly owned subsidiaries of the Charles Schwab Corporation.

Certain services may be provided by affiliated professionals and third-party firms. Schwab Wealth Advisory does not provide specific individualized legal or tax advice. Please consult a qualified legal or tax advisor where such advice is necessary or appropriate.

Asset allocation and diversification strategies do not ensure a profit and do not protect against losses in declining markets.

© Charles Schwab & Co, Inc., Member SIPC. All rights reserved.

(0924-KPP9)

Family gifting

Javier* had always been close with his extended family, and as he entered retirement, he wanted to find a way to provide consistent support to his nieces and nephews. His goal wasn't to make grand gestures—it was to offer reliable help over time, in a way that felt thoughtful, sustainable, and aligned with his broader financial picture.

How Schwab Wealth Advisory helped

We worked with Javier to build a structured gifting strategy that let him support family while staying within annual IRS gift tax exclusions:

  • We established a yearly gifting plan with set amounts for each recipient, helping Javier stay organized and avoid triggering gift tax consequences.
     
  • He occasionally gifted appreciated stock, as some of his family members were in the 0% capital gains tax bracket and could be sold without incurring any federal capital gain tax.
     
  • Recurring transfers from select Schwab accounts were automated to simplify the process.

By keeping things simple and intentional, Javier was able to show up consistently for the people he cared about—while also modeling thoughtful financial habits for the next generation. His plan reflected not just generosity, but the values he hoped to pass on.

*These scenarios are for illustrative purposes only, are not the experience of any specific clients, and are no guarantee of future performance or success.

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