Tax Loss Harvesting and Direct Indexing With FREC.com

Good morning…

Now that some hot stocks and indexes are down for a few days it would be a good time to show people the benefit of tax loss harvesting.

I use FREC.com (SocialLeverage fund 4 invested) for all my indexing. Mo Adham, the founder, worked at Twitter for 5 years after they bought his company and also helped launch Instacart back in the day. He wanted to solve this problem for his own personal investing.

As people know from reading here I am all about the Nasdaq 100 and for that on FREC I use the $XLK (it has actually slightly outperformed the $QQQ over the last 10 years). The site looks like this:

It is really simple to get going and so easy to use because you are not overwhelmed with choices.

FREC works much better than the robo-advisors. You can harvest up to 2x more tax losses than robo advisors, for less than half the cost.

Yesterday Mo and team launched an amazing iOS app.

It looks like this…

A few months ago, my friends at Van Eck that manage the largest semiconductor ETF (ticker is $SMH), licensed the index to Mo at FREC to offer tax-loss harvesting. I decided to move a small amount of money into the index to get more exposure to $NVDA and other chip stocks. That might have been the top!

Assuming that was the top (so far it is), you can see that I still have harvested $5,346.07 in tax-losses during that time while the index is basically flat. If the index drops another 10 percent I will be adding a much bigger amount to the index. You can see why wealthy people have loved direct indexing over the years. Unfortunately, until FREC, this type of indexing was available for the wealthiest clients at the brokerages.

Of course is I had put the $65,000 in Fartcoin I would be retired, but that’s not my strategy with our indexing money which is the majority of our stock market investing. Ellen and the kids each have their own FREC accounts as well.

This is all powered by APEX on the backend so you are insured like any other brokerage. FREC is well capitalized and has hundreds of millions in assets already under management.

I am careful about financial recommendations here on the newsletter, but I am very confident that every investor will love using FREC and be happy they started investing this way.