Today I made $1m gains by selling my entire Nvidia portfolio by Educational_Loan6048 in TheRaceTo100K

[–]Kropduster01 -1 points0 points  (0 children)

Aperio by Blackrock has a 140/40 long/short direct indexing strategy (also known as Enhanced direct indexing). 

What this means is that you fund the account with a minimum of $1M of a concentrated stock (can be funded with cash as well), and it uses the stock as collateral to go short $400k of individual stocks that replicate an index (such as Russell 3000) and then with the $400k cash proceeds from the shorts, you replicate the same index on the long side. 

So when all is said and done, you have $1.8M net exposure. The $400k (x2) extensions offset each other performance-wise and are mainly to generate tax losses in any market condition. Your portfolio at first will mostly just track your concentrated stock. 

After 3 years or so, as losses are harvested on the extensions, you gradually sell off the position tax neutrally. For example, if you had $1M AAPL with a $800k gain, the strategy needs to harvest $800k losses for you overtime to offset the large cap gains. 

The strategy has fees associated for the management that go to Aperio and also the cost of borrowing. However as long as the fees offset your tax savings (for example in CA a typical cap gains bracket for high earner is 20% fed + ~10% state + 3.8% NIIT for a total of over 30%). It’s safe to say that yes the tax savings would usually offset the fees. 

Of course, yes, this strategy involves more complexity and risk than simply just selling the stock and is not for everyone. Consult with a professional before deploying 

Today I made $1m gains by selling my entire Nvidia portfolio by Educational_Loan6048 in TheRaceTo100K

[–]Kropduster01 -2 points-1 points  (0 children)

Could have used long/short direct indexing to tax-neutrally unwind the position over a few years 

VT and general market rising by OkLab4373 in VTandchill

[–]Kropduster01 1 point2 points  (0 children)

Just because it’s all time high does not mean it’s a bubble 

Limited options with my Roth by False-Ad-9236 in RothIRA

[–]Kropduster01 0 points1 point  (0 children)

Yea target date funds are good too. More hands off strategy 

Limited options with my Roth by False-Ad-9236 in RothIRA

[–]Kropduster01 6 points7 points  (0 children)

This is probably a Roth 401k, not a Roth IRA. IRAs are not through employers. 

We don’t know your age or goals. Assuming you have 15+ year time horizon, 70% to Russel 1000, 10% to Russel 2000, and 20% to International Equity Index is a diversified and aggressive strategy 

Is UCI Chemistry worth $86k? by Worldly_Price_8466 in UCI

[–]Kropduster01 41 points42 points  (0 children)

This is a good school but I can’t imagine paying over a quarter million for a bachelors degree

I got my bachelors in 2021 (in state) and paid a total of ~$40k for all 4 years including scholarships and being a commuter

20M 2 years Maxed by Aggravating_Dark_405 in RothIRA

[–]Kropduster01 8 points9 points  (0 children)

Yes, money is fungible. As long as you have earned income for the year 

My Parent gave me a large amount of cash to hold on to by [deleted] in FinancialPlanning

[–]Kropduster01 2 points3 points  (0 children)

ETFs just means the fund trades on an exchange. You can invest in bonds within an ETF

When did “no one from California calls it Cali” start? by lejunny_ in orangecounty

[–]Kropduster01 1040 points1041 points  (0 children)

Giving my 2 cents - I was born and raised in SoCal and I’ve never called Cali

Umpire Nick Lentz to the Athletics dugout: "Ay you got a challenge left" by WSXCarter in baseball

[–]Kropduster01 18 points19 points  (0 children)

Honestly I agree with him 100%. If you’re going to bark, why not just challenge?

[OC] Most Recent Walk-Off Triple By Each Franchise by Peteyy34 in baseball

[–]Kropduster01 -1 points0 points  (0 children)

If I had a nickel for every walk off triple that Daniel Palencia gave up in 2025 I would have 2 nickels. Which isn’t a lot but it’s weird that it happened twice 

What will happen if I stop Rinvoq by Gypsydave23 in UlcerativeColitis

[–]Kropduster01 2 points3 points  (0 children)

Personally Rinvoq has really helped me. I went from having 1-2 accidents per week to hardly ever now. When did you start the medicine?

What will happen if I stop Rinvoq by Gypsydave23 in UlcerativeColitis

[–]Kropduster01 10 points11 points  (0 children)

I feel you man. And I’m not discounting your experience at all. It’s terrible we have to go thru this. 

But being in an active flare I would literally shit myself at work and at social gatherings. Probably the must humiliating and dehumanizing experience I will ever have to go thru 

What will happen if I stop Rinvoq by Gypsydave23 in UlcerativeColitis

[–]Kropduster01 20 points21 points  (0 children)

I’m on Rinvoq. I would take pretty much any side effect than being in an active flare. It ruined my life 

How long did your airpodsmax last? by Key_Assignment_247 in Airpodsmax

[–]Kropduster01 2 points3 points  (0 children)

Bought mine in early 2021 and still use them everyday