AUTHOR: Howard Schwartz on 8/21/2025 FIRST: Mark Crothers on 8/21/2025 | RECENT: Mark Crothers on 8/21/2025
Comments
My free advice is to hire a lawyer who is also an accountant who can prepare a present value calculation to show that the survivor benefit is the only responsible choice.
After reading a few of the comments, I would like to clarify that direct indexing, or separately managed accounts do not create any extra paperwork in preparing my annual income tax returns. I receive a 1099 just as I would for any other similar account. As noted, the 1099s are very long but you do not enter every position. The provider totals everything up and you only need to enter the summary data. These investments are not for everyone, but in the right situation can be very beneficial. I have not paid any capital gains tax for 10 years.
I use several Separately Managed Accounts from Fidelity and one from Schwab which are a different name for direct indexing. They work as advertised. The tax losses were greater initially but are still significant after 10 years. Each year is different. 2022 had large paper losses. 2025 did not. It depends on the market. My suggestion is to avoid them for the reasons discussed below unless you need the losses to offset gains or you have significant assets to invest. By the way, if you do not just make an initial deposit but continue to add assets, the paper losses can continue. For most investors a simple index fund is probably a better choice and you can harvest losses yourself if the market drops after your purchase.
If you want to save money and also have a great cup of coffee, get a French press and pour the hot coffee in a thermos. Been doing this for decades. It's why I could afford to retire.
My wife is an amateur artist and sells her paintings on her web site and Facebook. She gets contacted by scammers with similar pitches. One wanted to license one of her paintings to supposedly use the image on commercial products. My wife has a boilerplate licensing agreement she sent out and never heard anything more. The internet has made it possible for every criminal in the world to try to steal your money.
I remember Jonathan mentioning that he purchased no load, low fee variable annuities for his children, I think when they were born. He may have had something there that it is worth looking into. The compounding on 65 years of stock market gains is astonishing. You need low fees and no load though.
Mr. Quinn and I must shop at the same stores. His writing perfectly describes my grocery store experiences. I do not understand why they don't treat their customers with more respect, as I spend lots of money there. They should make it easy for loyal customers to get the best prices.
Social Security taxability is not based on MAGI. It is based on combined income which includes AGI plus non-taxable interest plus half of Social Security benefits.
My wife and I bought a new free-standing home in a NJ development that was started about 12 years ago. It will ultimately have 315 homes. We pay $367 per month to the HOA. If fact, there is an open meeting tonight. The HOA fee covers the usual maintenance items and the contingency fund is adequate. Unfortunately, the clubhouse flooded during the winter due to a frozen pipe in the fire suppression system and has been closed since. I hope to find out tonight which insurance company is going to pay for the repairs and remodeling. We assumed when we bought the home that we will have to absorb fee increases and also may have assessments if the need arises. Since we are not attached to any other homes, we are responsible for all repairs and maintenance of our home. The builder did provide a 10 year warranty on his work. It is tricky to predict the future. Something is bound to go wrong.
Comments
My free advice is to hire a lawyer who is also an accountant who can prepare a present value calculation to show that the survivor benefit is the only responsible choice.
Post: Help for divorcing daughter
Link to comment from May 16, 2026
After reading a few of the comments, I would like to clarify that direct indexing, or separately managed accounts do not create any extra paperwork in preparing my annual income tax returns. I receive a 1099 just as I would for any other similar account. As noted, the 1099s are very long but you do not enter every position. The provider totals everything up and you only need to enter the summary data. These investments are not for everyone, but in the right situation can be very beneficial. I have not paid any capital gains tax for 10 years.
Post: Direct Indexing Anyone?
Link to comment from May 12, 2026
I use several Separately Managed Accounts from Fidelity and one from Schwab which are a different name for direct indexing. They work as advertised. The tax losses were greater initially but are still significant after 10 years. Each year is different. 2022 had large paper losses. 2025 did not. It depends on the market. My suggestion is to avoid them for the reasons discussed below unless you need the losses to offset gains or you have significant assets to invest. By the way, if you do not just make an initial deposit but continue to add assets, the paper losses can continue. For most investors a simple index fund is probably a better choice and you can harvest losses yourself if the market drops after your purchase.
Post: Direct Indexing Anyone?
Link to comment from May 11, 2026
If you want to save money and also have a great cup of coffee, get a French press and pour the hot coffee in a thermos. Been doing this for decades. It's why I could afford to retire.
Post: Dickie and his magic beans
Link to comment from May 7, 2026
My wife is an amateur artist and sells her paintings on her web site and Facebook. She gets contacted by scammers with similar pitches. One wanted to license one of her paintings to supposedly use the image on commercial products. My wife has a boilerplate licensing agreement she sent out and never heard anything more. The internet has made it possible for every criminal in the world to try to steal your money.
Post: New Face, old scam
Link to comment from May 6, 2026
I remember Jonathan mentioning that he purchased no load, low fee variable annuities for his children, I think when they were born. He may have had something there that it is worth looking into. The compounding on 65 years of stock market gains is astonishing. You need low fees and no load though.
Post: Saving for Grandchildren
Link to comment from May 2, 2026
Mr. Quinn and I must shop at the same stores. His writing perfectly describes my grocery store experiences. I do not understand why they don't treat their customers with more respect, as I spend lots of money there. They should make it easy for loyal customers to get the best prices.
Post: Shopping around – you versus the grocery store
Link to comment from May 1, 2026
Social Security taxability is not based on MAGI. It is based on combined income which includes AGI plus non-taxable interest plus half of Social Security benefits.
Post: Tax Free Income Trap, Dealing With MAGI
Link to comment from April 22, 2026
My wife and I bought a new free-standing home in a NJ development that was started about 12 years ago. It will ultimately have 315 homes. We pay $367 per month to the HOA. If fact, there is an open meeting tonight. The HOA fee covers the usual maintenance items and the contingency fund is adequate. Unfortunately, the clubhouse flooded during the winter due to a frozen pipe in the fire suppression system and has been closed since. I hope to find out tonight which insurance company is going to pay for the repairs and remodeling. We assumed when we bought the home that we will have to absorb fee increases and also may have assessments if the need arises. Since we are not attached to any other homes, we are responsible for all repairs and maintenance of our home. The builder did provide a 10 year warranty on his work. It is tricky to predict the future. Something is bound to go wrong.
Post: The condo, HOA, senior citizen conundrum
Link to comment from April 20, 2026
NJ gas tax is 49.1 cents per gallon. PA is 58.7.
Post: Penny Wise, Pound Foolish
Link to comment from April 16, 2026