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Originally published in Forbes and written by Third View Co-Founder, Zoltan Pongracz

“Just like life has different chapters and stages, so does wealth management.“ - Zoltan Pongracz

Once wealth exists, protecting capital becomes more important than maximizing upside at any cost. The risk profile that makes sense at $2 million of net worth often looks very different at $20 million.

Whether it’s a founder who sold their business or someone who rode a concentrated position to amass wealth, I often see people struggle with this shift because it requires moving away from the “all in” mentality that helped create the success in the first place. The instinct to hold onto a concentrated position that has performed well is powerful.

Many investors have experienced the rush of watching one investment climb dramatically in value, and the temptation is to stay on that ride indefinitely. I encourage investors to remember that until you sell or reduce risk, those gains exist only on paper.

Concentration that builds wealth can also destroy it quickly. Think of it like climbing a mountain: Reaching the summit requires taking risks, which is why experienced climbers place anchors along the way. If they slip, the rope catches them and limits the fall.

Those anchors can take many forms: diversifying away from a concentrated position, systematically trimming appreciated assets, building liquidity through cash or short-term bonds, or allocating a portion of wealth to a durable core portfolio designed to compound steadily over time.

The goal isn’t to eliminate risk entirely, but to make sure that one mistake or market shock doesn’t erase years of progress.

Entrepreneurial Risk Versus Portfolio Risk

One of the most important distinctions founders need to understand is the difference between entrepreneurial risk, which involves concentrated bets designed to create large upside, and portfolio risk, which requires structured exposure aligned with long-term goals.

A Practical Framework For Managing Risk

An approach that works well for many founders is a “core and satellite” framework. The core portion, typically 90% to 95% of the portfolio, acts as the long-term compounding engine. It is diversified and built to support the financial plan, with assets that include equities, bonds and alternative investments designed to grow steadily over time in a reasonably predictable manner.

The satellite portion, often 5% to 10% of the portfolio, allows room for opportunistic or speculative investments like venture capital, emerging asset classes like crypto or direct stakes in private businesses.

Under this structure, entrepreneurs can still pursue compelling opportunities and maintain exposure to asymmetric upside. But at the same time, most of their wealth stays anchored in a strategy designed to protect the long-term plan. If a satellite investment fails completely, the core portfolio isn’t ruined.

The Discipline Of The Next Chapter

Founders should not stop taking thoughtful risks, but they need to recognize that the balance changes over time. In the beginning, you don’t have much to lose and a lot to gain. Eventually, that balance reverses, and that’s where changing strategies becomes critical.

Just like life has different chapters and stages, so does wealth management. The goal is not to eliminate upside, but instead to place anchors that act as a high-water mark, protecting the years of effort that brought you to this point.

If this resonates, forward it to someone you think might benefit from reading it. And if it spurs additional thought, we’re always here for a conversation.

Frank McKiernan, Co-Founder & Managing Partner at Third View Private Wealth, sat down with Aaron Miller, Managing Director and Head of Global Venture Capital, and Dave Shekar, Director on the CF Private Equity Venture Capital team, to gain perspectives on today’s venture capital market.

The conversation was hosted live for clients, but if you weren’t able to attend live, here’s a link to the replay.

Watch the full conversation

Capital is increasingly concentrated with a smaller group of experienced, established managers who have demonstrated the ability to navigate multiple market cycles. At the same time, outcomes within venture have become more concentrated, where a very small percentage of companies drive the majority of returns. For clients, this reinforces a critical point: access alone is not enough. Who you invest with matters more than ever.

Enabled by global distribution and deeper pools of private capital, businesses are reaching significant scale in a fraction of the time it once took, often before entering public markets. As a result, much of the value creation is happening earlier in the lifecycle, making a thoughtful private markets allocation increasingly important.

While the initial wave has focused on infrastructure, we are now beginning to see the next phase emerge, application layer companies across sectors like healthcare, financial services, and enterprise software. These areas, along with select opportunities in defense, cybersecurity, and automation, represent some of the most compelling pockets of innovation today.

Our role is to help clients navigate this complexity, identifying where durable value is being created and providing access to the managers and opportunities best positioned to capture it.

Yes. The tax deadline is your last opportunity to make IRA or Roth IRA contributions for the prior year, which can be a simple way to improve your long-term tax efficiency. Depending on your income, you may be eligible to contribute directly to a Roth IRA or use a backdoor Roth strategy. Traditional IRA contributions may also be deductible, reducing current-year taxes.

It’s about figuring out which strategy best fits your broader tax picture. Coordinating IRA decisions with your overall income, tax bracket, and future expectations can meaningfully impact outcomes over time.

We’re happy to help evaluate the right approach for your situation.

Have a question you’d like us to answer in a future newsletter? Simply reply to this email to submit it to us.

Third View Co-Founder, Frank McKiernan, recently joined Alyson Tucci on the Barron’s Advisor Podcast to share more on his career story and beliefs regarding the future of financial advising.

Frank shares how the Third View team approaches the work of advising clients—from treating individuals like institutions to investing with a long-term, business-owner mindset.

🎧 Listen to the full episode here.

📖 Forbes: Jerry Sneed Shares A Practical Guide For NFL Players To Compound Wealth Beyond The League

📖 Forbes: Zoltan Pongracz on The Three Biggest Exit Mistakes Business Owners Make—And How To Avoid Them

📖 Frank McKiernan on Barron’s: For Wealthy Clients, Managing Investments Is Just Table Stakes. What They Really Need.

That’s all for this month. If you enjoyed the newsletter, the greatest compliment would be to forward it to someone you think would find it valuable. We’ll be back with more next month.
- Frank, Jerry, and Zoltan

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Past performance is not indicative of future results. The material above has been provided for informational purposes only and is not intended as legal or investment advice or a recommendation of any particular security or strategy. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. Information obtained from third-party sources is believed to be reliable though its accuracy is not guaranteed, and Third View Private Wealth makes no representation or warranty as to the accuracy or completeness of the information, which should not be used as the basis of any investment decision. Information contained on third party websites that Third View Private Wealth may link to is not reviewed in their entirety for accuracy and Third View Private Wealth assumes no liability for the information contained on these websites. Opinions expressed in this commentary reflect subjective judgments of the author based on conditions at the time of writing and are subject to change without notice. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission from Third View Private Wealth. For more information about Third View Private Wealth, including our Form ADV brochures, please visit https://adviserinfo.sec.gov or contact us at (203) 408-0098.