Total Estimated Tax Savings
$60,000/year
over 1 of 15 strategies enabled
Direct Indexing
Tax-loss harvesting through direct indexing
Quick scenarios:
$2,000,000
$50K$10M
3.0%
1% (conservative)6% (aggressive)
Typical range: 2–4% annually. 3% is a reasonable baseline assumption for a diversified equity portfolio.
37%
State tax rate10%
0% (TX, FL)13.3% (CA)
Annual Tax Savings
$28,200
in actual tax reduction per year
Losses harvested$60,000
Effective tax rate47.0%
5-year tax savings$141,000
10-year tax savings$282,000
Savings range (2%–5% harvest rate)
$19K$47K
With $2,000,000 in direct-indexed investments, you could harvest $60K/year in tax losses — worth $28K in actual tax reduction at your 47% rate.
How it works
1. Own individual stocks
Instead of holding an index fund, you own the individual constituents of the index directly.
2. Harvest tax losses
When positions decline, sell them to realize losses while buying similar stocks to maintain exposure.
3. Offset your gains
Harvested losses offset capital gains and up to $3,000 of ordinary income per year.