Episode 427: Our Generous Listeners, BOXX, Direct Indexing And A Tribute To Sister Francine
May 28, 2025
Listeners dive into a community-focused discussion, tackling audience emails and fundraising for the Father McKenna Center. The intriguing BOXX ETF is analyzed for its tax advantages, challenging traditional financial wisdom. The conversation shifts to the evolving landscape of hedge fund taxes and the benefits of direct indexing for high-income earners. The focus then turns to self-managed investing, urging listeners to seek purpose beyond mere wealth accumulation, all while celebrating inspiring contributions to society through personal agency and community impact.
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volunteer_activism ADVICE
Practical Charity Donation Advice
To help end discussion and promote giving to charity, directly donating is the simplest approach.
Encouraging matching donations can accelerate fundraising goals quickly.
insights INSIGHT
BOXX ETF Tax Strategy
BOXX ETF uses option constructions to mimic short-term treasuries but offers better tax treatment by taxing gains as long-term capital gains.
Despite some criticism, this tax strategy is likely to remain legal and useful for high-income investors.
insights INSIGHT
Innovation Faces Resistance
New financial technologies often face resistance from traditionalists wanting to preserve old methods.
The BOXX ETF controversy illustrates this classic clash between innovation and entrenched norms.
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In this episode we answer emails from Katie, Sean, Glen, Anonymous and Kelly. We discuss our matching campaign for the Father McKenna Center (rolled out in Episode 426), the BOXX ETF and the Rorschach test it presents, direct indexing, Risk Parity Chronicles, and the real purpose of Financial Independence and how to win at retirement and life.
Money without purpose is just numbers in an account. Financial independence isn't the finish line—it's the starting point of a more meaningful journey.
In this deeply personal episode, Frank Vasquez tackles sophisticated investment strategies while unveiling the philosophical underpinnings of his approach to wealth. He examines the tax-efficient BOXX ETF, explaining how it allows investors in higher tax brackets to potentially convert ordinary income into more favorable long-term capital gains. Drawing on insights from Alpha Architect's Wes Gray, Frank positions this strategy within the evolving landscape of personal finance technology, contrasting innovators against those clinging to outdated viewpoints.
The conversation shifts to direct indexing—a strategy where investors replicate indices by purchasing individual securities rather than funds. Frank cuts through the marketing hype, offering practical guidance on when this approach makes sense (primarily for those in higher tax brackets) and when it's simply not worth the complexity. His personal experience with property and casualty insurance companies demonstrates selective implementation without paying unnecessary fees.
Most powerfully, Frank shares the story that shaped his retirement philosophy—his aunt Sister Francine of the Sisters of Mercy. This "firebrand and hellraiser" ran schools and soup kitchens, challenged the wealthy to contribute more, and built deep community connections. When she died without money or fame, her funeral filled a cathedral with mourners—the ultimate testament to a life well-lived.
What's the purpose of saving all that money if not to create meaningful impact? How might your financial independence serve something greater than account balances? Listen and reconsider what truly constitutes "winning at life."
Risk Parity Radio