351 Exchanges & Exchange Funds: Diversify Portfolio & Skip Taxes

Diversifying a large stock position without triggering a massive tax bill can feel impossible, but there are advanced strategies designed specifically for this challenge. In this episode, Matt breaks down two powerful but often misunderstood tools: the 351 Exchange and the Exchange Fund. While they sound similar, they serve completely different types of investors and portfolio problems. You’ll learn how a 351 Exchange can help reorganize an already diversified portfolio into a custom ETF without realizing capital gains. Then, Matt explains how an Exchange Fund can provide much-needed diversification for someone with a highly concentrated stock position, along with the trade-offs, lock-up periods, and accredited investor requirements that come with it. Here’s some of what we discuss in this episode: Why selling concentrated positions can trigger massive tax bills What a 351 Exchange actually is- and who it helps How Exchange Funds work and why they require a 7-year lock-up How to decide which strategy fits your situation 0:00 – Intro 1:16 – Overview of 351 Exchange 3:13 – Overview of Exchange Funds 4:12 – Comparing 351 and Exchange 4:52 – How to choose the right strategy Resources Our website: https://www.perspective6wealthadvisors.com/ Phone: (952) 225-0333 Email: [email protected] Schedule your no-cost consultation: https://www.perspective6wealthadvisors.com/start-here/ Essential Financial Guides 5 Ways to Maximize Your Medtronic 401k Plan Guide: https://perspective6wealthadvisors.com/guide/ Stock Compensation Tax Form Checklist: https://perspective6wealthadvisors.com/stock-compensation-tax-checklist/ ESPP: A Comprehensive Guide: https://perspective6wealthadvisors.com/espp-guide/ Check out our other no-cost financial resources here: https://perspective6wealthadvisors.com/resource-center/ Stay Connected Check us out on YouTube: https://www.youtube.com/@P6Wealth LinkedIn: https:// www.linkedin.com/company/perspective-6-wealth-advisors Investment advisory services offered through Savvy Advisors, Inc. Other entities and/or marketing names, products or services mentioned here are independent of Savvy Advisors, Inc.