Move out of your concentrated stock without a giant tax bill.

We start with your position today: how many shares you hold, what you paid for them, and what share of your portfolio they represent. For many people with years of vested RSUs, a single company makes up more than half of everything they own. When that much rides on one stock, an earnings miss, regulatory ruling, or sector selloff can pull your whole portfolio down. That concentration usually carries a large unrealized gain, which is why most people hold on longer than planned. We set a target allocation with you and close that gap gradually, rather than in one large taxable sale.

Instead of buying an S&P 500 ETF as a single fund, direct indexing is designed to hold individual stocks from the index. In any given stretch, some of those stocks fall even when the index as a whole rises. We can sell the ones that have declined, record the loss, and replace them with similar holdings so your market exposure stays on track. Those harvested losses are applied against the gain from selling a portion of your concentrated shares, which can reduce the tax on that sale and could offset it entirely in some years.

AAPL

MSFT

AMZN

ABT

NFLX

TMO

LIN

MO

WDC

ORCL

MA

V

PG

KO

MS

GS

Tax losses harvested

$0.00

Meta sold

$0.00

When we sell part of your concentrated position, the proceeds go into the direct index. A larger index holds more dollars across more stocks, which means more opportunities to harvest losses over time. Those losses support the next round of sales, which moves more money into the index again. Over several years the balance shifts from one company toward the broad market, with each step helping to pay for the next.

When we harvest a loss, we sell a stock that has dropped and buy a similar one in its place, so your money stays invested and your index keeps tracking the S&P 500. The loss is recorded for tax purposes, but your market exposure does not change. You can then use that loss to offset gains you would otherwise pay tax on, and the tax you keep stays invested alongside the rest of your portfolio. Over many years, that difference can compound into an after-tax return above what the same stocks would earn inside a single ETF.