Can you offer comments on direct indexing with Fidelity and the perceived value that you received? Also, were you adding additional taxable money into your accounts during the year. Trying to understand if direct indexing is logical if you already have major embedded gains and aren't purchasing new positions to tax loss harvest. thanksNot that many people that can answer this question. I think they had 93 customers (91 individuals) as of December 31, 2023, based on my reading their March 2024 Form ADV filing, and an updated one from last week.Can anyone that used FREC describe how it was to do your taxes?
Strangely, their Form ADV Part 2A dated from last week states: "As of the date of this Brochure, the Firm does not have any assets under management." I assume this is an error and was copied from their initial filing from last year. I'd expect them to have more customers this year, so perhaps someone will be able to share their experience here at some point.
I used a similar indexing service from Fidelity last year. I manually input the summary information from the 1099 into the tax software, and it worked fine, since they were all covered securities. I assume Frec would have a similar process.I think a good direct indexing service should be able to avoid all wash sales. If you use such a service you shouldn't transact any of the same securities used by the service in another account. I plan to avoid using Wealthfront in part due to them forcing the usage of completion ETFs without being able to opt out of specific ones.You're not supposed to enter the summary if you have a wash sale which you almost certainly do if you're direct indexing.
Statistics: Posted by drzzzzz — Wed Jul 10, 2024 11:02 pm