Frec offers direct indexing services that enable investors to hold individual stocks while automatically executing daily tax loss harvesting to maximize tax savings. This approach allows users to potentially earn up to 2x more in tax benefits compared to traditional robo-advisors, all for a low annual fee of 0.10%.
Funding
$26.4M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
GFounders
Product
Problem
Traditional investment strategies like ETFs and robo-advisors may not fully optimize tax benefits for investors. These methods often lack the granular control needed to maximize tax loss harvesting, potentially leaving significant tax savings unrealized.
Solution
Frec offers a direct indexing platform that allows investors to own individual stocks while employing automated daily tax loss harvesting. This approach aims to increase potential tax savings compared to traditional robo-advisors. Users can customize their portfolios by adding or excluding specific stocks and sectors, providing a personalized investment experience. Frec's platform also supports in-kind transfers of existing stock holdings, potentially offering tax efficiencies when transitioning to direct indexing.
Target Audience
Frec targets individuals seeking tax-optimized investment strategies, particularly those with potential capital gains or those who desire greater control over their index investments.
Features
- Direct indexing across multiple indices licensed from S&P® and Russell®
- Automated daily tax loss harvesting at the individual stock level
- Customizable indices with the ability to add or exclude up to 10 individual stocks and up to 2 sectors (with some limitations)
- In-kind stock transfers from existing brokerage accounts
- Portfolio line of credit with borrowing against the direct index portfolio
- Support for individual, business, and trust accounts
- Integration with Apex Clearing, a third-party custodian, for holding assets
- Consolidated 1099 tax form for simplified tax filing