Rich Habits Podcast

139: The Easiest Way To Lower Your Tax Bill - Direct Indexing with Public

Oct 13, 2025
Guest
Stephen Sykes
Stephen Sykes, COO of Public and former SoFi investment products lead, dives into the world of direct indexing and its potential for everyday investors. He breaks down how direct indexing differs from ETFs, emphasizing tax-loss harvesting benefits and lowering investment minimums to $1,000. Stephen also highlights how this innovation democratizes access to sophisticated strategies previously reserved for the affluent. He shares insights on user experience, fees, and the importance of tax optimization, making investing more personalized and manageable.
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INSIGHT

Direct Indexing Boosts After‑Tax Returns

  • Direct indexing replicates an index by owning each stock, unlocking unique tax opportunities.
  • Owning individual positions lets you harvest losses to offset future capital gains and improve after-tax returns.
ADVICE

Start Direct Indexing With $1,000

  • Start direct indexing with as little as $1,000 on Public to access tax loss harvesting previously reserved for the wealthy.
  • Use recurring investments to build a diversified direct index over time while keeping regulatory costs sensible.
ADVICE

Customize Index Exposure Easily

  • Use Public's UI to treat a direct index like an ETF while keeping customization and shareholder rights.
  • Remove or tilt exposures (e.g., S&P 470) easily to avoid unwanted concentration or employer stock.
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