Wealth Protection Advisory
AI Portfolio MRI™ · Indicator

Concentration risk — measured where it actually lives.

Concentration risk is rarely visible inside one account. The AI Portfolio MRI™ aggregates positions across the entire household to make oversized exposures unmistakable.

Why it matters

Concentration is the single most common reason a household portfolio underperforms expectations during stress. A position that looks measured inside a 401(k) can become outsized when combined with the same exposure held in a spouse's IRA, a taxable brokerage, and a deferred compensation account. The AI Portfolio MRI™ flags positions that exceed 10% of the household view, and treats top-five exposure above 50% as a separate review area.

How the indicator is computed

The diagnostic aggregates all uploaded positions by symbol across accounts, computes household weights, and scores the result against two thresholds: the largest single position and the combined top-five weight. The score is clamped between 35 and 96 — preliminary, never a verdict.

What the advisor verifies

Cost basis, account type, restricted-stock and 10b5-1 plans, intended use of proceeds, charitable goals, and tax bracket all bear on whether a concentrated position should be trimmed, hedged, or held. None of these are decided by the diagnostic — they are decided by a fiduciary advisor with the full picture.

Run the AI Portfolio MRI™

Receive a confidential, preliminary diagnostic across all five indicators. Advisor verification required before any recommendation.

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FAQ

Frequently Asked Questions

What counts as concentration risk?

Concentration risk is when a single position, sector, or theme makes up enough of a household portfolio that its outcome disproportionately determines the household's outcome. There is no universal threshold, but most fiduciary reviews flag positions above 10–15% of household assets for closer review.

Is concentration always bad?

No. A long-tenured employee with a low cost basis in company stock may have legitimate reasons to hold a concentrated position. The point of the review is to make the trade-off — tax cost, diversification benefit, liquidity — explicit rather than incidental.

Why does WPA aggregate at the household level?

Because risk is a household-level outcome, not an account-level one. The same exposure may appear in a 401(k), a brokerage, and a spouse's IRA — only the household view reveals the true weight.