Situation
Zuri is a newly retired accountant. Over the course of several years during her tenure, she invested portions of her paycheck in a startup company. This company recently had an initial public offering and most of Zuri’s wealth came out of lockup. While Zuri was materially wealthy on paper via her investments in the company, she did not have a lot of liquidity on her balance sheet and was therefore looking for ways to diversify risk and create liquidity for a nicer lifestyle.
Our Approach
Zuri’s J.P. Morgan team reached out to the Strategic Equity Solutions team to better understand single stock diversification strategies. The Strategic Equity Solutions team suggested that Zuri extract liquidity from her stock through secured borrowing, essentially a line of credit. This approach would allow her to access her wealth while still retaining ownership of her shares.
Outcome
By following the suggestions of the Strategic Equity Solutions team, Zuri was able to balance her liquidity needs while still staying invested in the company. She was also able to secure her wealth against market movements and start her wealth journey. Her J.P. Morgan team began discussing ways for Zuri to bucket her wealth, taking into account tax implications.
