Case Study: Compound Planning | Cache
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Case study
Cache helps Compound Planning When a Single Stock Controls the Plan
Ian Wymore, CFP®
Principal and Senior Wealth Advisor
Compound Planning
Website: Compound Planning
Serving: Professionals, Business Owners and Retirees
Assets under management: $4B
Location: New York, NY
The Challenge: When success becomes a source of stress.
For advisors like Ian Wymore, 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.
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.
Diversify your stocks without a giant tax bill.
Over $100k in a single stock?
The Cache Exchange Fund can help.