DIRECT INDEXING STRATEGIES

Rationale

As a healthcare professional, your financial life is anything but typical. Between student loans, variable income, practice ownership, and complex tax considerations, traditional investment products often fall short. Direct indexing offers a smarter, more personalized way to invest—helping you stay diversified while tailoring your portfolio to your unique goals, career stage, and tax situation.

Much as ETFs significantly improve the tax disadvantages of mutual funds there is still room left for further tax optimization – which we accomplish via direct indexing.

What We Offer

Our direct indexing solutions are built specifically with healthcare practitioners in mind. Each model is designed to:

• Maximize Tax Efficiency – Through tax-loss harvesting and capital gains management.
• Personalize Your Portfolio – Align investments with your values, profession, and risk profile.
• Provide Flexibility & Control – Own individual securities directly, with full transparency.
• Adapt to Your Career Stage – Whether you’re just starting out, growing your practice, or preparing for retirement.
• Integrate with Your Bigger Picture – Seamlessly connect your investments to student loan repayment, retirement planning, and practice ownership strategies.

Sample Model Types

• Core Growth Model – Broad U.S. equity exposure, customized for long-term growth and tax efficiency.
• Sustainable Healthcare Model – Tilt toward or away from healthcare-related companies.
• Tax-Sensitive Growth Model – Designed for high-income earners looking to minimize tax drag.
• Retirement Transition Model – A more conservative, tax-aware allocation for those nearing retirement.
• Practice Owner Model – Flexible liquidity planning for practitioners balancing both personal and business investments.

MONITORING & REBALANCING

1. Ongoing Monitoring

• Performance Tracking: Compare portfolio returns against the chosen benchmark (e.g., S&P 500, Russell 3000).
• Tracking Error: Monitor how closely the portfolio follows the index, while accounting for any customizations (e.g., ESG screens, sector exclusions).
• Tax Opportunities: Continuously scan for tax-loss harvesting opportunities without violating wash-sale rules.
• Client Objectives: Review if current holdings are still aligned with client’s goals, values, and restrictions.

2. Rebalancing Process

• Frequency: Typically quarterly or semi-annual reviews, with additional rebalancing triggered by market events.
• Thresholds: Rebalancing may be initiated if:
• A stock or sector weighting drifts beyond a set limit.
• Tracking error exceeds the acceptable range.
• Tax-loss harvesting opportunities are identified.
• Customization Adjustments: Update exclusions or tilts if the client’s preferences change.

3. Tax-Smart Rebalancing

• Sell securities with losses to offset gains elsewhere.
• Delay or reduce sales of appreciated positions to manage tax impact.
• Harvest losses strategically throughout the year, not just at year-end.

4. Client Reporting & Transparency

• Provide clear updates on:
• Portfolio performance vs. benchmark.
• Tax savings achieved through harvesting.
• Any rebalancing actions taken and why.
• Ensure clients understand how their portfolio is evolving over time.

BRINGING THE FUTURE INTO THE PRESENT

From retirement planning, investment strategies, tax optimization, to estate planning, we offer personalized solutions tailored to your unique circumstances.

We specialize in personalized retirement solutions for small & mid-sized businesses, the self-employed, and individual investors in healthcare.

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