When a single stock has driven your success, whether from years of service, stock options, or a business you helped build, diversification can come with a steep capital-gains bill.
That’s where exchange funds come in. Instead of selling your shares, you can contribute them to a private investment fund and receive ownership in a diversified portfolio, deferring taxes while reducing risk.
With capital-gains rates expected to rise after 2026, this strategy is gaining traction among executives, founders, and long-term shareholders looking for tax-efficient diversification.
Exchange funds aren’t for everyone, but for qualified investors, they offer a rare balance of liquidity, tax efficiency, and long-term wealth preservation.
At Liberty One Wealth Advisors, we believe in clear, thorough planning to preserve, sustain, and grow our clients’ wealth over a long-term time period. Whether you’re planning for the future or need assistance with current financial challenges, we’re ready to help. Reach out to us to schedule a complimentary Q&A with one of our team members.
