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Continental Resources Employees: Smarter Ways to Manage Taxes on Appreciated Stock

Healthcare Provider Update: Healthcare Provider for Continental Resources Continental Resources typically offers healthcare coverage through major national insurers, with benefits administered by UnitedHealthcare. This enables the company to provide its employees with comprehensive health plans that include a range of medical services, preventive care, and wellness programs. Potential Healthcare Cost Increases in 2026 As we approach 2026, Continental Resources, like many other employers, faces a significant surge in healthcare costs that are projected to rise by approximately 8.5%. This increase arises from a perfect storm of factors, including heightened medical expenses driven by inflation, the potential loss of enhanced federal subsidies, and substantial rate hikes from insurers. Without congressional action to extend subsidy programs, employees could see their out-of-pocket costs escalate dramatically, potentially exceeding 75% for many, placing further financial strain on individuals and families. With these developments, strategic planning for healthcare expenditures will be essential for both employers and employees moving forward. Click here to learn more

'Continental Resources 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.

'Continental Resources 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.' Continental Resources 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. Continental Resources 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 Continental Resources 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 Continental Resources 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 Continental Resources 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 Continental Resources 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 Continental Resources 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 Continental Resources 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 Continental Resources offer to its employees?

Continental Resources offers a 401(k) retirement savings plan to help employees save for retirement.

Does Continental Resources provide a matching contribution for its 401(k) plan?

Yes, Continental Resources provides a matching contribution to the 401(k) plan, which helps employees maximize their retirement savings.

How can employees at Continental Resources enroll in the 401(k) plan?

Employees at Continental Resources can enroll in the 401(k) plan by completing the enrollment process through the company’s HR portal.

What is the eligibility requirement for participating in Continental Resources' 401(k) plan?

Employees must be at least 21 years old and have completed a minimum period of service to be eligible for Continental Resources' 401(k) plan.

Can employees of Continental Resources choose how much they want to contribute to their 401(k) plan?

Yes, employees of Continental Resources can choose their contribution percentage, subject to IRS limits.

What investment options are available in the Continental Resources 401(k) plan?

The Continental Resources 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds.

How often can employees at Continental Resources change their 401(k) contributions?

Employees at Continental Resources can change their 401(k) contributions at any time, subject to payroll processing deadlines.

What happens to the 401(k) savings if an employee leaves Continental Resources?

If an employee leaves Continental Resources, they can roll over their 401(k) balance to another retirement account or take a distribution, subject to tax implications.

Does Continental Resources allow for loans against the 401(k) plan?

Yes, Continental Resources allows employees to take loans against their 401(k) plan, subject to specific terms and conditions.

Are there any fees associated with the Continental Resources 401(k) plan?

Yes, there may be administrative fees associated with the Continental Resources 401(k) plan, which are disclosed in the plan documents.

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

Restructuring Layoffs: In 2024, Continental Resources announced a significant restructuring plan, leading to the layoff of approximately 15% of its workforce. This decision is part of a broader strategy to streamline operations and reduce costs amid fluctuating oil prices.

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For more information you can reach the plan administrator for Continental Resources at 20 N. Broadway Oklahoma City, OK 73102; or by calling them at (405) 234-9000.