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Investing - Theory, News & General • Frec - Low Cost (0.10%) S&P500 Direct Indexing Startup

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If I decide to use direct indexing on a long term basis, I expect to have a wider dispersion of unrealized capital gains compared with an index fund portfolio.

I’d expect to be able to donate or gift my shares with the lowest cost basis and end up lower unrealized gains. Even if I didn’t do so, I’d expect to be able to liquidate the highest basis shares to get cash at a lower cost than other methods when doing a partial liquidation.

I plan to look for a service that allows me to do these things before committing large amounts of my taxable investments to it.
btw I saw Frec posted a new whitepaper on this topic, it gives some data on when you can expect to use up accumulated losses but does not discuss donating appreciated assets: https://frec.com/resources/blog/white-p ... ithdrawals

Statistics: Posted by nvrmnd — Thu Feb 06, 2025 10:40 pm — Replies 84 — Views 18678



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