Managing a concentrated stock position or preparing for a significant tax year can create complex planning decisions. This episode outlines a practical framework for using direct indexing to support diversification, reduce concentrated exposure, and prepare for liquidity events in a controlled and tax-aware way.
Rex Berger speaks with Jeff Murphy, Market Leader at Invesco, about how direct indexing works and why it has become a useful approach for handling concentrated stock, navigating equity-based compensation, and identifying tax opportunities within a portfolio. They discuss the differences between long-only and long-short structures, how tax loss harvesting functions in real portfolios, and how tracking error fits into overall portfolio design. The conversation includes examples relevant to business owners, corporate executives, and families managing long-term embedded gains.
What to expect:
- How direct indexing builds index exposure while allowing for customization
- Why tax loss harvesting can be a valuable planning tool
- How long-short direct indexing helps investors with concentrated stock
- Examples of preparing for liquidity events and reducing tax pressure
Connect with Rex Berger:
- LinkedIn: Rex Berger
- LinkedIn: Generation Capital Advisors
- Generation Capital Advisors
Connect with Jeff Murphy:
- LinkedIn: Jeff Murphy
- LinkedIn: Invesco
- Invesco
About our Guest:
Jeff Murphy is a market leader at Invesco with deep expertise in direct indexing, portfolio construction, and tax-sensitive investment strategies. He works closely with advisors across the country to help clients navigate concentrated stock positions, liquidity events, and the evolving world of personalized indexing.
33 min