Custom Indexing for 2025 with Gregory Allison, CFA (Episode 36)

Custom Indexing for 2025 with Gregory Allison, CFA (Episode 36)

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Summary: In this episode of Wealth on the Move, host Will Hoffman and guest Gregory Allison, CFA from Orion Custom Indexing discuss the innovative strategy of custom indexing. They explore how this approach allows investors to manage concentrated stock positions, utilize tax loss harvesting, and enhance after-tax returns. The conversation delves into the technology behind custom indexing, its applications for real estate investors, and the benefits of charitable giving strategies. They also touch on the emergence of custom indexing as a viable option for a broader range of investors, emphasizing the importance of personalized wealth management solutions.

Resources:

Takeaways:

  • Custom indexing allows for personalized investment strategies.
  • Tax loss harvesting can enhance after-tax performance.
  • Utilizing losses can offset future capital gains.
  • Technology plays a crucial role in executing custom indexing.
  • Real estate investors can benefit from custom indexing strategies.
  • Charitable giving can be optimized through custom indexing.
  • Custom indexing is not suitable for IRA accounts.
  • The strategy emerged due to advancements in technology.
  • Concentration risk is a concern for long-term investors.
  • Longevity impacts investment strategies and tax planning.

Connect with Will Hoffman: 

Disclosures:
Gregory Allison Orion Portfolio Solutions are not affiliated with Hoffman Wealth Management and Private Advisor Group.
Wealth management services provided by Orion Portfolio Solutions, LLC (“OPS”), a registered investment advisor. Orion OCIO services provided by TownSquare Capital, LLC (“TSC”), a registered investment advisor. OPS and TSC are affiliates and wholly owned subsidiaries of Orion Advisor Solutions, Inc.
Custom Indexing offered through Orion Portfolio Solutions, LLC a registered investment advisor.
Custom Indexing is an investment strategy wherein a portfolio is managed to mimic an index or other portfolio, while taking into account the tax position, holdings, and individual investing preferences of a client. The performance of a portfolio using custom indexing may vary significantly from the target index (referred to as tracking error or tracking difference), and this variance may increase with greater customization within a portfolio.
Tax-loss Harvesting is a process by which securities trading at unrealized losses are sold to realize a taxable loss. Proceeds from the sales are then used to reinvest in alternate securities to maintain market exposure. Tax-loss Harvesting can be used as a strategy to offset realized gains from other investments and/or carried forward to later calendar years to offset future taxable gains.
This information is general in nature and is not intended as tax advice. You should consult a tax professional as to how this applies to an individual tax situation. Nothing contained herein is intended to constitute accounting, legal, tax, security or investment advice, nor an opinion regarding the appropriateness of any investment, or solicitation of any type.

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