Welcome back to Money 20/20! In this insightful episode, we feature Peter Lazaroff, CFA, CFP®, Chief Investment Officer at Plancorp, host of the renowned “The Long Term Investor” podcast, and author of “Making Money Simple.” Peter joins us to shed light on a sophisticated investment strategy gaining traction: direct indexing.
Direct indexing, while not a new concept, is increasingly relevant for today’s investors. Peter expertly breaks down the evolution of investment vehicles to illustrate what direct indexing is and why it matters. We delve into the considerations and potential trade-offs of this approach, offering a balanced perspective for those exploring advanced investment options.
One of the most compelling aspects of direct indexing is its potential for tax optimization. For practice owners, particularly those considering selling their practice, direct indexing can be a powerful tool to minimize tax liabilities in the year of sale. Peter explains how this strategy can be strategically employed to manage and potentially reduce your tax bill.
However, Peter emphasizes the importance of due diligence. Even for seasoned index investors, understanding the nuances of direct indexing advisory firms and managers is crucial. He provides key insights into what to look for when selecting a firm to manage a direct indexing strategy, ensuring it aligns with your sound investment philosophy.
To explore the topics discussed in detail, visit integratedpwm.com and navigate to the Learning Center. There, you can subscribe to our “planning life on purpose” newsletter for ongoing financial tips and strategies to enhance your financial well-being. For personalized financial guidance, consider scheduling a Triage conversation to discover how we assist OD practice owners nationwide in tax reduction, cash flow management, and making informed investment decisions, both within and outside of their practices. Ultimately, our goal is to empower you to live your best life, by design.
Finally, for those looking to master financial fundamentals, explore the 20/20 Money Ultimate Financial Masterclass. Find the link in the show notes to learn more about this comprehensive course designed to build your financial brilliance.
Enjoy this engaging conversation with Peter Lazaroff, CFA, CFP®, and unlock the potential of direct indexing.
Resources:
- 20/20 Money Masterclass Information
- Get a FREE copy of Peter’s Book!!
- Single-stock volatility & equity market returns – JP Morgan Guide to the Markets
- S&P 500: Index Concentration & Valuations – JP Morgan Guide to the Markets
- Magnificent 7 Performance & Earnings Dynamics – JP Morgan Guide to the Markets
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