My business represents most of my net worth. Is that a problem?
By Adam Kasick | Wealth Advisor | Updated September 2026
Not automatically. Your business may genuinely be the best investment you have ever made. The question is whether your financial independence, retirement and family goals are unintentionally dependent on one company continuing to perform.
Here's how I'd think about it.
Concentration is not automatically a mistake. It becomes a planning problem when we cannot explain why the position is still the right size, what risk it creates or what would happen to your goals if the asset fell substantially.
Look at both balance sheets
I want to see the economics of the business and your personal balance sheet together. What does another dollar accomplish inside the company versus outside it?
Build options
The goal is not to weaken a great business. It is to gradually create enough personal wealth that your future choices are not controlled by a single asset.
Here's what I'd want to know about you.
- What percentage of your financial life depends on this asset?
- What is your cost basis and where is the asset held?
- When will you need money from the portfolio?
- What would a major decline change for you?
- What taxes or other constraints would selling create?
I don't want a pie chart to make the decision. I want you to see the tradeoffs clearly enough to make the concentration intentional.
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