WestPac Warns 80% Stock Concentration Can Jeopardize Wealth Despite High Advisory Spending
Updated
Updated · InvestmentNews · Jul 8
WestPac Warns 80% Stock Concentration Can Jeopardize Wealth Despite High Advisory Spending
1 articles · Updated · InvestmentNews · Jul 8
Summary
WestPac said many affluent clients still hold 60%, 70% or even 80% of net worth in one business or stock, leaving their biggest balance-sheet risk largely unmanaged.
The firm blamed coordination failures—not lack of advice—saying families often pay tens of thousands of dollars to CPAs, attorneys and wealth managers who optimize separately rather than design one integrated plan.
For business owners, WestPac urges building personal assets before any exit through tools such as defined benefit and cash balance plans, reducing dependence on a future sale.
For executives with concentrated employer stock, it recommends multi-year, tax-conscious diversification using staged sales, direct indexing, donor-advised funds and exchange funds.
The broader message is that concentration risk is a balance-sheet problem, not just a portfolio issue, requiring tax, estate, protection and investment planning to work in sequence.