Strive to Reduce Volatility Inherent with a Single-Stock Concentration.
Maximize the divestment value using in-depth fundamental and technical analysis.
Work towards generating cash-flow income with the sale of stock or index options.
Example: Phases of Diversification
5
PHASE II
PHASE III
LONG TERM
Current or Phase I:
Start by implementing an income strategy, for example...
Begin implementation
of diversified portfolio
of equities and bonds
to generate tax-free
income.
Continue to execute
income strategies to
enhance cash flow
and reduce margin.
Evaluate active tax-loss harvesting strategy to reduce taxes.
Continue building a portfolio with added diversification and income streams, and execute income strategies to enhance cash flow and reduce margin.
The portfolio will be more diversified, grow, and generate a steady of flow of income.
Maintain active tax-loss harvesting strategy.