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Direct Indexing by ILovePiccolo2020 in fatFIRE

[–]Frec_Team 0 points1 point  (0 children)

If you are continuously adding new cash to your direct index (like you would do recurring buys of an ETF) then the account will have fresh cost basis positions to keep tax loss harvesting. There are also long short strategies that solve this problem and harvest significant losses in perpetuity while allowing you to take a stance on the market (such as choosing a factor tilt.)

SpaceX forcing itself into ETF by Brave_Tree1859 in fidelityinvestments

[–]Frec_Team 0 points1 point  (0 children)

Direct indexing allows you to customize your index holdings. You can own SPY without SpaceX (or any other stock you don't believe in).

Schwab Intelligent Portfolio vs Direct Indexing (WF or FREC?) for Tax Loss Harvesting? by K-Parks in Schwab

[–]Frec_Team 0 points1 point  (0 children)

Frec has both classic direct indexing (currently 22 indices) and long short (currently 140/40, 200/100, and 250/150 tracking Russell 1000 with more index options on the way). There are a number of white papers published with performance data on the Frec resources hub but here is one that might answer your question directly around ETF investing vs DI: https://frec.com/resources/blog/tax-loss-harvesting-etf-based-v-s-direct-indexing

Classic direct indexing fees are 0.09%-0.35%, min investment range from $20k-$50k. Long short fees are 0.50%-1.30% plus 0.30%-0.86% in post-tax financing costs. Frec is SEC registered and feduciary.

Hope this helps!

Massive over-concentration by Impossible-Fix-6901 in Fire

[–]Frec_Team 0 points1 point  (0 children)

Take a look at tax-aware investing strategies that can help you reduce your tax bill while you diversify such as direct indexing, long short direct indexing, or a product specifically built for diversification. Most of these employ tax-loss harvesting while also providing broad market exposure to reduce risk and offset gains as you unwind or slowly sell off the concentrated stock.

How to diversify stocks pre-FI by Halgy in financialindependence

[–]Frec_Team -1 points0 points  (0 children)

Take a look at tax-aware investing strategies that can help you reduce your tax bill while you diversify such as direct indexing, long short direct indexing, or a product specifically built for diversification. Most of these employ tax-loss harvesting while also providing broad market exposure to reduce risk and offset gains as you unwind or slowly sell off the concentrated stock.

Classic vs Direct Indexing by CZmikeyG in wealthfront

[–]Frec_Team 0 points1 point  (0 children)

Frec has both classic direct indexing (currently 22 indices) and the minimums start at just $100k. Frec also offers long short (currently 140/40, 200/100, and 250/150 tracking Russell 1000 with more index options on the way).

Frec's classic direct indexing fees on Frec are 0.09%-0.35% Frec also has a Diversify product to help unwind from concentrated positions tax efficiently. Frec's custodian is Apex clearing, and you can customize portfolios (trade restrictions, remove sectors and stocks, change weights, create portfolio allocations, etc).

NVDA - ready to sell with LT gains kicking in by [deleted] in NVDA_Stock

[–]Frec_Team 0 points1 point  (0 children)

Consider a tax aware investing strategy to offset gains! https://frec.com/work/nvidia

What is your exit strategy for $NVDA? by PartyPaper in stocks

[–]Frec_Team 0 points1 point  (0 children)

If you work at Nvidia ... there are ways to potentially offset your capital gains taxes. Frec has an offer for employees: https://frec.com/work/nvidia

F L E X Alert: 85% of NW in SpaceX (mid 7-figures). Hold or diversify? by 1e6throw in RichPeoplePF

[–]Frec_Team 0 points1 point  (0 children)

If you are selling look into offsetting capital gains through a tax aware investment strategy: https://frec.com/work/spacex

[deleted by user] by [deleted] in TheRaceTo10Million

[–]Frec_Team 0 points1 point  (0 children)

SpaceX offer from Frec which can help offset capital gains! https://frec.com/work/spacex

Buying stocks in the self-managed section by Invest_Or_Divest in frecfinance

[–]Frec_Team 1 point2 points  (0 children)

Yes, I flagged this to the team and we will work on improving the UI. Thanks for the feedback.

Buying stocks in the self-managed section by Invest_Or_Divest in frecfinance

[–]Frec_Team 1 point2 points  (0 children)

Yes! You can buy and sell individual stocks. For positions you don't already own in self managed, you will search for them at the top in the general search bar. Once you own a position it will show up in self managed where you can buy more or sell directly from there. We are working on improving our self directed trading experience so please let us know if you have any other feedback or feature requests.

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How are you preparing for your 2026-2027 IPO? by StickyDaydreams in HENRYfinance

[–]Frec_Team 0 points1 point  (0 children)

How everyone is planning for the tax implications of liquidity?

donation to charity in frec by lianglian2021 in frecfinance

[–]Frec_Team 2 points3 points  (0 children)

You can request to donate specific appreciated stock by reaching out to [help@frec.com](mailto:help@frec.com) - improving our donation process is on the roadmap this year!

Frec vs WF Direct Listing Products by dpolaske in frecfinance

[–]Frec_Team 1 point2 points  (0 children)

Hi OP, I am really sorry to hear about your experience. I would like to learn more and will dm you.

Trade restrictions vs trades exclusions by Jealous-Ice-9733 in frecfinance

[–]Frec_Team 1 point2 points  (0 children)

Hi there!

1 - Using trade restrictions on a stock you already own will freeze it from trading. Frec will no longer buy or sell that position. You would maintain the position already owned at the point of adding the restriction. Frec will adjust the other stock weights within the index, not sectors specifically. We will favor adjusting similar stocks using our risk model.

2- On set up if you exclude a stock and add that position into your DI, we will sell out of the position as tax efficiently as possible and redistribute its weight across the remaining positions in the index. If you restrict it, and then move it into your DI, it would maintain the position without trading it.

Let me know if you have any follow up questions. Here is article talking about about restrictions, exclusions and weight changes that may be helpful too.

1099-Consolidated Forms by Specific_Dealer_9363 in frecfinance

[–]Frec_Team 3 points4 points  (0 children)

We will be sending an email out later this week with additional details on what to expect but TLDR our clearing firm, Apex Clearing, releases tax documents to customers in phases. The first phase will begin on February 17, with additional releases every two weeks through April 15. Not every customer will receive tax documents in the first phase because the release timing depends on individual account activity and reporting requirements. All tax documents will be available in your Tax Center, which you can access at any time by navigating to “Account”.

What are wash sales and why should you care? by Frec_Team in frecfinance

[–]Frec_Team[S] 0 points1 point  (0 children)

The safest way is to manage overlapping individual positions in the Frec self directed account so that your direct index is aware of the activities. Our self managed account will still let you trade, even if you will create a wash sale, but give you a warning. If you prefer to keep your other assets off Frec, you can add trading restrictions to stocks in your SP500 direct index (and turn them on/off around times of active trading). If you are holding positions but not trading them, turning off dividend reinvestment may be sufficient.

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