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Brink's Employees: Smarter Ways to Manage Taxes on Appreciated Stock

Healthcare Provider Update: Healthcare Provider for Brink's Brink's employees have access to healthcare through various insurance providers depending on their selected plans. Notably, some of the major national insurers like UnitedHealthcare and Anthem may be involved, particularly as employees explore options in the ACA marketplace. As healthcare plans can differ between locations and employment types, it's advisable for employees to consult their HR department for specific provider details tailored to their needs. Potential Healthcare Cost Increases in 2026 As 2026 approaches, Brink's employees should be prepared for significant healthcare cost increases tied to the ACA marketplace. Insurers are poised to propose premium hikes of up to 66% in certain states, impacting overall affordability of healthcare. The expiration of enhanced federal premium subsidies may leave many employees facing out-of-pocket costs that could surge by over 75%. With many companies, including Brink's, likely shifting more healthcare expenses onto their employees, understanding benefit adjustments and planning for these rising costs will be crucial for maintaining financial health in the coming year. Click here to learn more

'Brink's employees with concentrated stock positions may benefit from thoughtful tax planning that allows for tax deferral while balancing liquidity, compliance, and long-term compounding,' Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

'Brink's employees who hold highly-appreciated stock may want to consider tax-efficient strategies that help mitigate their liabilities while aligning with their overall retirement goals,' Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

How taxes can affect investment returns, particularly on concentrated stock positions.
Exchange funds and options-based strategies as methods for tax deferral and diversification.
Alternative planning techniques outside ETFs, including charitable trusts and gifting strategies.

By Carlos Hernandez, Wealth Enhancement advisor

When it comes to driving portfolio returns, many investors aim to keep management fees low by investing in low-cost index funds and exchange-traded funds (ETFs). While fees matter, however, the real culprit for lower-than-anticipated performance is taxes. ¹

Wealth Enhancement advisor Carlos Hernandez explains: 'By losing less to taxes each year, investors have access to more capital that can continue to compound over time. This makes tax deferral an important part of an effective financial plan.' Brink's employees looking for long-term growth strategies could benefit by understanding how to better manage their investment tax burdens.

Trade Money

One area where taxes can take a toll is on the sale of company stock or other concentrated investment positions. Brink's professionals looking to diversify could face significant capital gains taxes on an outright sale. One way to diversify without triggering immediate capital gains is through exchange funds. By contributing their highy-appreciated stock to a pooled fund, investors can trade their concentrated holdings for shares in a diverse basket of securities. This method can be used by Brink's employees who want to diversify while postponing taxable events.

Although this method allows for tax deferral, it also requires investors to hold the exchange fund for a period of time, typically seven years. ² This could create a challenge for investors who require liquidity. Additionally, these funds are often exclusively accessible to wealthy, accredited investors—something Brink's executives should carefully evaluate.

Funds Based on Options

Another way to mitigate taxes on the sale of highly-appreciated stock is by using options contracts. The idea is to hedge risk with put options while covering the cost of those puts by selling call options—a strategy called 'collaring'. From there, the strategy reverses, with investors selling put options and using the proceeds to buy call option on an equity or bond index. ³ If managed effectively, this helps to diversify a concentrated portfolio while still maintaining liquidity.

Given the complexity of this strategy, meticulous planning is necessary. It's generally recommended that investors work with an experienced financial advisor before pursuing this approach.

Things to Be Aware of

Although these strategies can be beneficial for Brink's employees who hold highly-appreciated stock, caution is recommended. There are costs associated with these approaches, and potential liquidity risks. Additionally, the IRS may eventually contest such arrangements because their tax status has not been thoroughly examined—something Brink's retirees should keep top of mind.

'Tax drag reduction strategies can be effective, but they must be assessed through the lens of risk, liquidity, cost, and compliance,' warns Carlos Hernandez. What is appealing in theory must hold up to inspection in the real world.

Alternative Strategies

Although they show promise, investors with highly-appreciated stock or those looking to postpone gains have other alternatives besides exchange funds or options. Other tactics could include:

- Prepaid variable forwards (subject to IRS regulations, contracts to sell at predetermined terms in the future).
- Charitable remainder trusts (CRTs), which allow investors to donate appreciated stock to a charitable trust and receive a stream of regular income in return.
- Donor-advised funds (DAFs), which provide investors with a tax deduction for the fair market value of the appreciated stock they donate.
- Other gifting techniques, such as direct donations to charity or family.
Each has its own set of guidelines, advantages, and disadvantages. To limit unnecessary taxes or violating the constructive sale regulations, careful planning is necessary for Brink's professionals managing complex portfolios.

The Bottom Line

Although the movement to mitigate the tax burden on investments is not new, the instruments are changing. Both exchange funds and options-based structures offer investors a way to manage tax liabilities, especially for Brink's employees who hold highly-appreciated stock.

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In the end, taxes are unavoidable. However, with the correct set of instruments, they can be controlled and postponed. 'The real value comes from aligning tax strategy with investment strategy,' summarizes Carlos Hernandez.

Sources:

1. BlackRock Advisor Center. ' Investing for After-Tax Returns ,' 2025.

2. Kiplinger. ' Four Clever and Tax-Efficient Ways to Ditch Concentrated Stock Holdings ,' by Robert Waskiewicz. Sep. 11, 2025.

3. Financial Planning Association. ' Tax-Efficient Ways to Diversify Concentrated Stock Positions ,' by Peter Lazaroff. Oct. 2024.

What type of retirement savings plan does Brink's offer to its employees?

Brink's offers a 401(k) retirement savings plan to its employees.

How can Brink's employees enroll in the 401(k) plan?

Brink's employees can enroll in the 401(k) plan by completing the enrollment process through the company’s HR portal or by contacting the HR department.

Does Brink's offer a company match for the 401(k) contributions?

Yes, Brink's offers a company match for employee contributions to the 401(k) plan, subject to specific terms and conditions.

What is the maximum contribution limit for Brink's 401(k) plan?

The maximum contribution limit for Brink's 401(k) plan is determined by the IRS guidelines, which can change annually.

Can Brink's employees change their contribution percentage to the 401(k) plan?

Yes, Brink's employees can change their contribution percentage at any time by accessing their account online or contacting HR.

What investment options are available in Brink's 401(k) plan?

Brink's 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to choose based on their risk tolerance.

When can Brink's employees start withdrawing from their 401(k) plan?

Brink's employees can start withdrawing from their 401(k) plan at age 59½, or earlier under certain circumstances, such as financial hardship.

Does Brink's provide educational resources for employees regarding their 401(k) plan?

Yes, Brink's provides educational resources and workshops to help employees understand their 401(k) plan and make informed investment decisions.

Are there any fees associated with Brink's 401(k) plan?

Yes, Brink's 401(k) plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.

What happens to a Brink's employee's 401(k) if they leave the company?

If a Brink's employee leaves the company, they can roll over their 401(k) balance to another retirement account, cash out, or leave the funds in the Brink's plan if allowed.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Brink's announced a restructuring plan that includes significant layoffs and a review of employee benefits. The company is focusing on streamlining operations to improve efficiency amid economic uncertainties. Additionally, there may be changes to pension and 401(k) plans as part of cost-saving measures.

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For more information you can reach the plan administrator for Brink's at 1801 Bayberry Court Richmond, VA 23226; or by calling them at +1 804-289-9600.