“If you cannot look inside yourself and know that you have a special gift, indexing the majority of your assets makes the most sense.” JOHN W. ROGERS JR. If you’ve ever looked into investing, you’ve probably heard advice along those lines before. And it’s solid advice for most casual investors. Tracking the market is a […]

Direct Indexing is an increasingly popular investment strategy that bypasses traditional investment in mutual funds or exchange-traded funds (ETFs) in favor of investing directly in the individual stocks within a given index, such as the S&P 500. By adopting this approach, investors can avoid mutual fund or ETF management fees and gain greater control over […]

Frec Direct Indexing aims to improve on traditional broad-market ETF investing by matching the return of these assets at a comparable fee, while offering additional tax-loss-harvesting (TLH) benefits. For a more detailed background on the direct indexing approach we invite the reader to review the Direct Indexing White Paper [1]. In this report we consider […]

Direct indexing into a large index, such as the S&P 500, involves the automated allocation of several hundred stock positions and frequent trading to harvest tax losses. Like any activity in public markets, each of these transactions will incur transaction costs for the investor. These transaction costs include trading fees as well as costs resulting […]

Evan M. is a 37-year-old software engineering manager with a wife and two kids. He’s been investing for a long time. When he first got started, Evan self-managed his portfolio. Then, a few years ago, he got married, and his finances got more complicated, with things like a family trust and college savings accounts. Before […]

Esther Crawford is a successful entrepreneur and mother of three. She started her career as a content creator, then went on to found her own company, Squad. When Squad got acquired by Twitter, Esther joined their team as a Director of Product Management. Now, she writes $25k angel checks as a scout for Sequoia. But […]

Richard is a self-described bit of a nerd.  When it comes to investing, he likes to look under the hood to examine the intricacies of the many offerings before deciding to invest — or more commonly, deciding not to invest. He got his start in international commercial banking, then shifted to global capital markets, and […]

With Frec Direct Indexing, you can expect to tax loss harvest up to 45% of your portfolio over 10 years, or 14.7% in the first year. 14.7% sounds great, but what does that actually mean for you?  We’ll break it down for you using an average 33.3% tax rate and a one-time $50,000 investment. Assuming […]

Portfolio line of credit; underrated and misunderstood  We get it: you’re a long-term investor wanting to hold onto your beloved stocks. But you find yourself in a situation where you need a sizable chunk of cash. Did you know there is an easy option for you to access capital without selling your stocks? It’s called […]

It’s been a great year. You hit it big… You still can’t believe your college roommate, who used to sleep until noon, founded a company set to IPO. Looks like that $20,000 angel check you wrote him 15 years ago was worth it. Now you’re left with hundreds of thousands of capital gains and you […]

According to Vanguard research, much of the value of financial advisors comes from “behavioral coaching.” In fact, their paper claims that advisors can add up to a 2% alpha to your portfolio. In other words, creating a buffer between you and the “buy” or “sell” button. Selling in a state of panic or buying in […]