he's trying to do a direct indexing thingy that is all the rage right now.The stock portion is not what he's talking about he says he can create a more tax efficient less expensive diversified portfolio with individual stocks that buying the funds who charge I can just tell that he would rather me be in a larger bond safe position then I currently am at 80/20I don't see how investing in individual stocks equates to being "more defensive". I prefer to spread my equity risk among a large variety of companies. Keep in mind that purchasing a stock is buying into a particular company. If something happens that affects that particular company, its value can go way down.
He's going to run my holdings through whatever software he uses give me a stress test results and I talk with him next week this hasn't cost me anything yet
thing is:
1. you don't play defense by owning individual stocks (you could just own the market which holds ALL the stocks), you play defense by owning fixed income.
2. a direct indexing portfolio is sold as tax efficient because some stocks might not throw off dividends and there are tax loss harvesting opportunities. But you can tax loss harvest with ETFs too. And over time, unless you keep adding money, eventually your tax loss harvesting opportunities dry up on your original positions (because markets go up over time).
3. in the meantime a portfolio of hundreds of stocks is hard to unwind if you leave this cfp, which is the point. It makes it hard to want to leave because it's too complicated of a mess of a portfolio to handle on your own.
4. also tax time is real fun depending on how easy or hard it is to import all the transactions from all the buys/sells of these individual positions.
before you do this, you should really read some posts about direct indexing:
viewtopic.php?t=400301
viewtopic.php?t=424815
viewtopic.php?t=439155
viewtopic.php?t=398894
Statistics: Posted by arcticpineapplecorp. — Fri Jan 31, 2025 10:11 pm — Replies 41 — Views 2258