Recommendation. Trim Microsoft (MSFT) position in the Calloway joint taxable account from 41.2% of household equity to a target of 28%, executed in two tranches across Q2 and Q3 2026.
Care obligation. The Calloway IPS, last reviewed 11/2024, sets a 30% single-name concentration ceiling. The current MSFT position exceeds that ceiling by 11.2 percentage points. Trimming to 28% restores compliance with a 2-point buffer. [1]
Conflict obligation. No advisor compensation is tied to the recommended action. Drift fee schedule applies; no transaction-based fees.
Disclosure obligation. Tax impact estimated at $42,800 in long-term capital gains across the two tranches. Discussed with client per the meeting note dated 03/18/2026. [2]
Rationale. Recommendation aligns with stated household objectives of capital preservation and tax efficiency in the five years approaching retirement. [3]