Issues with direct indexing accounts arise here with increasing frequency.
A prime issue with direct indexing seems to be that everyone seems to get excited by TLH features and there isn't any discussion about if/how investors can partially exit or dial-back the size of their direct-indexing portfolios. It would seem to be a relatively simply matter for accounts to be subdivided or split if an investor needed to partially exit a direct indexed portfolio. Splitting/subdividing should be able to keep proportional gains/losses in each of the resulting accounts. But I don't think we've heard of any broker that offers it.
Direct indexing seems to be the "Hotel California" of investing, you can try to check out but you can never leave. The only way out is a long jump.
A prime issue with direct indexing seems to be that everyone seems to get excited by TLH features and there isn't any discussion about if/how investors can partially exit or dial-back the size of their direct-indexing portfolios. It would seem to be a relatively simply matter for accounts to be subdivided or split if an investor needed to partially exit a direct indexed portfolio. Splitting/subdividing should be able to keep proportional gains/losses in each of the resulting accounts. But I don't think we've heard of any broker that offers it.
Direct indexing seems to be the "Hotel California" of investing, you can try to check out but you can never leave. The only way out is a long jump.
Statistics: Posted by 123 — Sat Jan 18, 2025 7:29 pm — Replies 1 — Views 49