SomethingMusic
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User ID: 181
SomethingMusic
6d ago
You can only write off 3k/year of capital losses from tax loss harvesting which would be a pittance for the Trump family. However, you can use tax loss harvesting to cancel out capital gains in another equity.
SomethingMusic
6d ago
Without looking at the trades themselves, my immediate guess is direct indexing. Any hedge fund trade would be 'hidden' in that hedge funds manage the trades themselves and their investors invest capital into the hedgie, and in return receive a portion of the growth/dividends, so hedge trades wouldn't be listed as part of Trump's personal trades.
Other ideas - options spreads to help liquidate large non-qualified capital gains positions.
SomethingMusic
6d ago
Bonds and bond funds are somewhat different. You're correct the growth is anemic in that share price in the 5 year growth is pretty much dead even, but your holdings are growing through a dividend of approximately 4.5%. This dividend is better than current money market rates which are hovering anywhere from 2-3.5% The bonds in your mutual fund also may have some income tax advantages that money markets do not have, as they are largely US treasuries.
Kahn academy might be a pretty decent overview but I haven't looked at the course myself:
I haven't gone to into the weeds of the trading process involved in direct indexing, but assuming the trading team who is managing the indexing portfolio is awake, direct indexing should have less of a slippage issue as it is directly buying assets in real time to S&P holding movements compared to etfs which frequently use option contracts to match the pricing of their targeted index. Since options have a set expiration date, it's much easier to front run expiring contracts compared to actively trading 500 individual stocks. Vanguards promotional material indicate that harvesting and rebalancing is daily, so I'm not sure how much this is possible to be front run the active management from general market noise.
The main 'slippage' effect that direct indexing has is from avoiding wash sales instead of being front run by another trader.
Considering all direct indexing funds require a fee-based advisory management and the lowest initial investment I see from any company is around 200k initial investment,
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