What the free score checks
Flowvest's health score helps put single-stock risk in context by comparing concentration against diversification, asset balance, cash levels, and risk-management habits.
Step 1
Measure concentration by life impact
Percentages are useful, but the real test is impact. A 12% position in a small account may be annoying if it falls. A 12% position in a retirement account near a goal may be life-changing. Translate the single-stock position into dollars and ask what a 40% to 60% drop would mean.
- •Calculate the holding as a percentage of all investable assets, not one account.
- •Model the dollar impact of a large company-specific decline.
- •Separate emotional attachment from the role the stock should play in the plan.
Step 2
Watch for employer-stock double exposure
Employer stock can create two risks at once: your income and your net worth depend on the same business. If the company struggles, layoffs and stock losses can arrive together. That does not mean every share must be sold immediately, but it does mean the position deserves a deliberate limit.
- •Include vested equity, RSUs, ESPP shares, and options when measuring exposure.
- •Create a selling rule before blackout windows or earnings volatility force the issue.
- •Use new diversification targets to avoid repeatedly rebuilding the same risk.
Step 3
Reduce concentration without making it emotional
Concentrated winners are hard to trim because selling can feel like betting against yourself. A rule-based plan helps: set a target range, decide how quickly to diversify, and use tax-aware lots or future vesting to manage the transition. The goal is not regret minimization; it is goal protection.
- •Trim toward a target over time instead of relying on one perfect sale date.
- •Use broad funds to replace single-company risk with market-level exposure.
- •Rescore after trimming to confirm overall portfolio health improved.
Score the whole portfolio before deciding whether one winner has become too powerful.
The calculator below is free, shows the score instantly, and does not require brokerage credentials. Email is optional if you want the follow-up plan.
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FAQ
Common questions about this portfolio check
What percentage in one stock is too much?
There is no single cutoff, but many investors begin treating one stock above 10% of investable assets as a concentration risk. The right limit depends on goals, taxes, time horizon, employment risk, and how much loss the plan can absorb.
Should I sell a concentrated stock immediately?
Not necessarily. Taxes, trading windows, company rules, and personal goals matter. A better first step is to measure the exposure, define a target range, and create a staged diversification plan.
Does a broad ETF fix single-stock concentration?
Buying broad ETFs can help diversify future contributions, but it may not fix an existing oversized stock quickly. You still need to compare the single stock against the whole portfolio and decide whether trimming is needed.