Using exchange-traded funds (ETFs) and mutual funds to create diversified portfolios and track well-established indices has provided a great way for many investors to grow their wealth over the past few decades. However, simply using ETFs and mutual funds can restrict the investor’s ability to maximize the tax savings available since access to the underlying positions is not available.
Direct indexing offers the ability to track a particular index while providing the additional flexibility of actually holding each underlying position. While this strategy used to only be feasible for the wealthiest Americans, the transition to commission-free trading at the major custodians and the advancement of technology has made this strategy available to many more individuals.
Direct indexing can offer significant tax efficiency by maximizing the benefits of tax-loss harvesting, gifting appreciated positions to charity, and implementing a stepped-up basis strategy for the next generation.
Combined, these opportunities can keep more money in your pocket and reduce your tax bill to Uncle Sam! If you are interested in learning more about direct indexing and its tax efficiencies, we think you'll enjoy this month’s episode. Thanks for listening!
For more details we recommend that you check out our blog post covering the same topic at https://pw-wm.com/learn/investing/cutting-your-tax-bill-with-direct-indexing/.
Welcome to the first podcast episode of 2025! Looking back over 2024, market performance continues to be driven by the incredible performance of the Magnificent 7 - the seven largest tech companies. Aside from these seven companies, market returns were much less exciting.
The question remains, how long can the outperformance of large US technology companies continue, and are investors who are heavily allocated to the S&P 500 taking on unnecessary risk for the years to come given 1/3rd of the S&P is allocated to these seven companies?
Looking forward, 2025 is slated to be a year of significant discussion around tax legislation where lawmakers debate the December 31, 2025 scheduled expiration of many important individual, business, and estate tax provisions.
If you are interested in learning more about our perspective on 2024 and recommendations for key planning opportunities in 2025, we think you'll enjoy this month’s episode. Thanks for listening!
For more details, check out our blog post covering the same topic at https://pw-wm.com/learn/financial-planning/year-in-review-and-looking-ahead-to-2025/
The Corporate Transparency Act (CTA), passed on a bipartisan basis in 2021, introduces new federal reporting requirements aimed at improving corporate transparency and combating illegal financial activities.
The reporting requirements will impact most small business owners and investors who own or have substantial control over a business entity such as an LLC or corporation.
In this podcast, we provide a brief overview of why the CTA was considered necessary and how individuals can ensure they are compliant with the requirements in order to avoid the severe penalties for those who fail to file the necessary information.
If you are interested in learning more about the CTA and the reporting requirements, we think you'll enjoy this month’s episode. Thanks for listening!
For more details on who needs to file and how to file, we recommend that you check out our blog post covering the same topic at https://pw-wm.com/learn/tax-planning/the-corporate-transparency-act-for-small-business-owners/
Steve and Nathan have a passion for teaching others about finances and how to build the financial independence that is achievable with the proper planning. In their roles at Prairiewood Wealth Management, both Nathan and Steve focus on providing comprehensive financial advice to ensure their clients have a coordinated plan that covers all aspects of their finances including their investments, insurance, estate plan, and charitable giving goals.
As Certified Public Accountants (CPAs), both Nathan and Steve believe that one of the most overlooked aspects of financial advice is the tax impacts that result. Accordingly, a core focus of the advice they give centers on integrating tax strategy into the overall financial advising process.
Steve and Nathan are excited to share their knowledge through this podcast as well as their blog with the goal of helping you effectively manage your family’s wealth and ensure you have a comprehensive and coordinated plan for your future.
