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How Should You Invest $10M+? Most Underutilized Strategy Revealed
Manage episode 461062499 series 3307298
Direct indexing, an advanced investment strategy, allows investors to own individual stocks within an index instead of a mutual fund or ETF, offering greater control and flexibility. This approach is particularly valuable for tax-loss harvesting, where selling underperforming stocks and reinvesting can offset gains and reduce taxes without losing market exposure.
Ideal for high tax brackets, concentrated stock positions, or charitable giving, direct indexing can boost returns by 0.5%-1.85% annually over decades, a benefit known as “tax alpha.” Once reserved for ultra-wealthy investors, advances in technology now make it accessible to portfolios starting at $500K. However, success requires sophisticated tools and tax expertise, making it a powerful strategy for the right investors.
Questions answered:
1. How can direct indexing and tax-loss harvesting improve investment returns without increasing risk?
2. Who benefits most from using a direct indexing strategy?
Submit your request to join James:
On the Ready For Retirement podcast: Apply Here
On a Retirement Makeover episode: Apply Here
Timestamps:
0:00 - The strategy - direct indexing
3:57 - Tax loss harvesting
7:22 - More than locking in losses
9:36 - The research
11:38 - An involved process
13:05 - Criteria 1, 2, and 3
17:04 - Criteria 4 and 5
19:52 - More accessible due to technology
Create Your Custom Strategy ⬇️
Hoofdstukken
1. Direct Indexing Investment Strategy Overview (00:00:00)
2. Tax Loss Harvesting Investment Strategy (00:06:33)
3. Benefits of Using Separately Managed Accounts (00:15:39)
4. Financial Advisory Disclaimer Discussion (00:22:48)
266 afleveringen
Manage episode 461062499 series 3307298
Direct indexing, an advanced investment strategy, allows investors to own individual stocks within an index instead of a mutual fund or ETF, offering greater control and flexibility. This approach is particularly valuable for tax-loss harvesting, where selling underperforming stocks and reinvesting can offset gains and reduce taxes without losing market exposure.
Ideal for high tax brackets, concentrated stock positions, or charitable giving, direct indexing can boost returns by 0.5%-1.85% annually over decades, a benefit known as “tax alpha.” Once reserved for ultra-wealthy investors, advances in technology now make it accessible to portfolios starting at $500K. However, success requires sophisticated tools and tax expertise, making it a powerful strategy for the right investors.
Questions answered:
1. How can direct indexing and tax-loss harvesting improve investment returns without increasing risk?
2. Who benefits most from using a direct indexing strategy?
Submit your request to join James:
On the Ready For Retirement podcast: Apply Here
On a Retirement Makeover episode: Apply Here
Timestamps:
0:00 - The strategy - direct indexing
3:57 - Tax loss harvesting
7:22 - More than locking in losses
9:36 - The research
11:38 - An involved process
13:05 - Criteria 1, 2, and 3
17:04 - Criteria 4 and 5
19:52 - More accessible due to technology
Create Your Custom Strategy ⬇️
Hoofdstukken
1. Direct Indexing Investment Strategy Overview (00:00:00)
2. Tax Loss Harvesting Investment Strategy (00:06:33)
3. Benefits of Using Separately Managed Accounts (00:15:39)
4. Financial Advisory Disclaimer Discussion (00:22:48)
266 afleveringen
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