Concentration risk — measured at the household, not the account.
A position that looks measured inside a 401(k) often becomes outsized once the same exposure shows up in a spouse's IRA, a taxable brokerage, and a deferred comp account. The MRI makes that visible.
Where concentration usually hides
Long-tenured employees with company stock, founders post-liquidity, households with multiple advisors holding correlated 'best ideas,' and target-date funds layered on top of advisor-managed large-cap. None of these look concentrated until aggregated.
How the indicator is computed
The MRI aggregates positions by symbol across every uploaded account, computes household weights, and scores against two thresholds: largest single position and combined top-five. The score is clamped between 35 and 96 — preliminary, never a verdict.
What changes the conversation
Cost basis, restricted-stock and 10b5-1 plans, charitable goals, hedging tools, and tax bracket all bear on whether to trim, hedge, or hold. None of these are decided by the diagnostic — they are decided in a fiduciary conversation with the full picture.
Run the AI Portfolio MRI™
Receive a confidential, preliminary diagnostic across all five indicators. Advisor verification required before any recommendation.
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. It is the single most common reason a portfolio underperforms expectations during stress.
How much concentration is too much?+
There is no universal threshold, but most fiduciary reviews flag positions above 10–15% of household assets — and a top-five share above 50% — for closer review. The right answer depends on basis, plan rules, and intended use.
Is concentration always a problem?+
No. Concentrated positions sometimes reflect cost-basis, plan, or liquidity realities that justify holding. The point of the review is to make the trade-off explicit instead of incidental.
