In this episode of GET READY!, I spoke with Daniel Lee, a fiduciary financial planner who is the head of Plancorp’s San Francisco office about the benefits of having an investment plan. Daniel discussed the components of an investment plan and what to keep in mind when reviewing your investment portfolio. We also discussed how people can incorporate socially and environmentally responsible investing into their strategy.

If a single stock makes up 10% or more of your investment portfolio, or if a major decline in the value of one stock will significantly impact your financial plan, you have a concentrated stock position.

A concentration in one stock in itself is not a bad thing – in fact, you may owe a significant portion of your wealth thanks to it! But now that your wealth has been built, we recommend diversifying out of hefty single stock positions for a few crucial reasons.