Direct indexing gains appeal as taxable losses mount
June 20, 2022
Investment News – June 20, 2022
This Investment News article weighed the pros and cons of direct indexing, a strategy that uses individual stocks instead of ETFs and funds as the building blocks of an indexing strategy. The article states “David Schneider, founder of Schneider Wealth Strategies, is also a fan of direct indexing for tax optimization purposes, but he said advisers and clients need to be weighing the added fees.”
Mr. Schneider explains that “Direct indexing offers more potential tax-loss harvesting opportunities than a conventional ETF or fund approach, although these benefits are probably overstated,” and that with direct indexing, “There’s a high degree of customization, so it can be a good strategy for investors who want to avoid exposure to specific companies or industries. But one of the downsides to direct indexing is potentially higher costs versus an ETF or index fund.”
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MarketWatch.com - December 30, 2023 This MarketWatch article discusses planning strategies for people approaching retirement. In the article, David Schneider states, “Make sure you have a plan. If you don’t do the planning, you really won’t have a successful retirement,” adding, “Your 50s are a really important time to be very serious,” and to “Hunker down and get serious. Every investment needs to be prudent and diversified. Increase any savings, if possible. Make catch-up contributions, if possible.” Read More: Marketwatch.com
Fortune- July 31, 2023 This article discusses the pros and cons of owning bank CDs in an IRA. In the article, David Schneider points out that “In order to get the best yields, you’re going to have to shop around and find the banks offering the most attractive rates at the time you’re funding the IRA,” and adds, “That could mean opening lots of small accounts at different institutions based on what was attractive at the time, which can be a nightmare to manage as the CDs mature.” He also mentions “If you compare a CD with a maturity of five years or less to a corporate bond of the same maturity, you’re usually going to get a better yield with a CD.” He also notes that “In general, by laddering and taking your maturing dollars and putting them in a longer-term CD, you’ll end up averaging the higher rates from longer-term CDs,” says Schneider. Read More: Fortune.com
Forbes.com – May 25, 2022 This Forbes article discusses the Federal Reserve, interest rates and the risk of a recession. In it, David Schneider points out that “An economic downtown is undoubtedly possible. That said, it is worth noting that the yield curve that has the best track record of predicting recessions” He notes that… Continue Reading May FOMC Minutes: Big Rate Hikes On Tap At June And July Fed Meetings
Marketwatch.com – January 19, 2022 This article discusses HELOCs and how to get the best rate on them. In the article, David Schneider states that “Generally, I advise people to go to their local banks because they will be interested in those loans.” The article also says that “borrowers may be surprised by just how… Continue Reading One surprising thing people think is a dealbreaker to getting a home equity loan or HELOC
Marketwatch.com – September 8, 2021 This article outlines the benefits and risks of home equity lines of credit. In the article, David Schneider states that “borrowers need to make sure they can afford higher payments when rates go up,” adding “Don’t be fooled by teaser rates,” which might be a low rate for the first… Continue Reading Some HELOC rates now start below 3%. Tempting, but is a home equity line of credit right for you?
Investor’s Business Daily- May 7, 2021 Investor’s Business Daily recently asks David A. Schneider about international investments. In the article, he pointed out that “given the recent performance of international markets, people aren’t necessarily thrilled about international diversification,” and added, “but I tell clients that a substantial part of the world’s wealth is outside the… Continue Reading When Clients Resist Owning Global Stocks, Advisors Build Their Case
Realtor.com- April 26, 2021 This article talks about 5 good reasons to refinance a mortgage. In it David Schneider points out that savings from a refinance can be used to boost retirement savings and also suggests that some homeowners might want to refinance to a fixed-rate “particularly if something is changing in your life, like… Continue Reading 5 Smart Reasons To Refinance Your Mortgage Right Now
Business Insider – November 28, 2020 Business Insider recently asked David A. Schneider what Janet Yellen’s appointment as US Treasury Secretary would mean for markets. In the article, he stated, “People are familiar with Yellen from her tenure as Fed Chair, and she is relatively dovish, both of which are pluses for markets,” and added,… Continue Reading What Janet Yellen’s appointment as US Treasury Secretary would mean for markets
Barron’s – August 8, 2020 In this article, which considers retirement planning strategies for singles, David Schneider advises that protecting income via disability insurance can be paramount for singles. He states “Your biggest asset might be your ability to earn an income, and if you’re on your own, protecting that ability is super important.” Read… Continue Reading Single and Planning for Retirement? Here Are 4 Key Things to Do.
Acorns – April 17, 2020 In this article, which talks about what to do with a stimulus check, David Schneider advises, “If you need the money soon, keep it liquid,” adding “If you don’t, and you’re able to, put it away for retirement.” He suggests holding onto the stimulus cash while contributing more to an… Continue Reading How to use your stimulus check to invest for the future