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Show HN: Double – Design and invest in your own stock index
91–100 of 103 posts
Re: Show HN: Double – Design and invest in your own stock index
#92A product that I've wanted for a long time is "broad market index fund , minus the individual stocks I am overweight in due to current or previous employment equity" (e.g. VTSAX - MSFT, GOOG/GOOGL), any chance you can handle this today/build it out in the near future? Sounds like you might be able to handle this already?
I'd argue it's a good idea to consider one's current job-industry as an aspect of diversification even without having large RSUs/stocks/options.
Better to have either a market downturn you can ride out while working, or chronic unemployment while your investments are strong, instead of the double-whammy of long-term unemployment and a big portfolio downturn at the same time.
Re: Show HN: Double – Design and invest in your own stock index
#93Earlier quoted context omitted.
PFOF is a deal breaker. If everyone but Fidelity is doing it thats a huge selling point for Fidelity. Go against the grain and do what is right for your customer if you want to have the net worth of people who care about their money and thus more trust than Robinhood.
Why would you care about PFOF as a retail investor? You're benefiting from it.
No you are not. Your orders are not sent to the best exchange execution possible but to market makers who pay kickbacks to your broker and give you a far worse deal with every single transaction. The cost of poor execution is much higher than a 2 dollar commission (which is what Fidelity shows). It also reduces market transparency.
Re: Show HN: Double – Design and invest in your own stock index
#94Earlier quoted context omitted.
> accounting info is held separately in APEX So the good news is that M1 doesn't use apex for clearing anymore The bad news is that... things got worse? After they swapped to doing clearing in house, they dropped like a month of incoming wires without reaching out at all, until I noticed on my monthly login. Turns out that they had changed the underlying wire instructions (makes sense), but sent an email saying that…
I'd love to earn your business.
I'd love to understand why this feature/product requires an entire startup. I dont mean to be dismissive -- obviously it does, as shown by my experience with Fidelity Baskets given they cannot achieve it!
Also, I used FolioFN and ShareBuilder for years to do the same and they seem to have flopped despite having a compelling product. I'd love to understand why such an obvious feature/product with sound alignment to financial recommendations cant seem to do well in the marketplace!
Re: Show HN: Double – Design and invest in your own stock index
#95Earlier quoted context omitted.
Why would you care about PFOF as a retail investor? You're benefiting from it.
No you are not. Your orders are not sent to the best exchange execution possible but to market makers who pay kickbacks to your broker and give you a far worse deal with every single transaction. The cost of poor execution is much higher than a 2 dollar commission (which is what Fidelity shows). It also reduces market transparency.
> Your orders are not sent to the best exchange execution possible
Look up NBBO, that would be illegal. You're getting better execution as a retail trader thanks to PFOF.
Re: Show HN: Double – Design and invest in your own stock index
#96A product that I've wanted for a long time is "broad market index fund , minus the individual stocks I am overweight in due to current or previous employment equity" (e.g. VTSAX - MSFT, GOOG/GOOGL), any chance you can handle this today/build it out in the near future? Sounds like you might be able to handle this already?
I'd argue it's a good idea to consider one's current job-industry as an aspect of diversification even without having large RSUs/stocks/options. Better to have either a market downturn you can ride out while working, or chronic unemployment while your investments are strong, instead of the double-whammy of long-term unemployment and a big portfolio downturn at the same time.
Totally valid, I should have written it as, "current employment, current/previous equity."
Re: Show HN: Double – Design and invest in your own stock index
#97A product that I've wanted for a long time is "broad market index fund , minus the individual stocks I am overweight in due to current or previous employment equity" (e.g. VTSAX - MSFT, GOOG/GOOGL), any chance you can handle this today/build it out in the near future? Sounds like you might be able to handle this already?
From a functional perspective, you can already do that using options, look at market neutral strategies for an example of how to construct a position like this. From a practical point of view, I doubt you want to get your nose into complex financial instruments just for that.
To your point, I _very much do not_ want to stick my nose into complex financial tools, hence my desire to use a more simple tool to get the exact value of "give me the thing I generally want, minus the one or two things I don't." Sounds like this is one option for doing so!
Re: Show HN: Double – Design and invest in your own stock index
#98A product that I've wanted for a long time is "broad market index fund , minus the individual stocks I am overweight in due to current or previous employment equity" (e.g. VTSAX - MSFT, GOOG/GOOGL), any chance you can handle this today/build it out in the near future? Sounds like you might be able to handle this already?
Yes we can handle this already. You can customize our broad market indexes by removing or lowering the weights of specific stocks (or sectors although you asked about stocks).
Awesome, thanks for confirmation!
Re: Show HN: Double – Design and invest in your own stock index
#99If you would trading daily and randomly, trading cost alone can kill your capital after a few years. Hence my biggest concern would be the percentage charged for trading.
This. I'm a Dave Ramsey fan, and I practice the "buy monthly and keep forever". If it drops, it's even better/cheaper (only 'trustworthy' assets - lately I've added India to the mix).
Daily trading makes the broker rich; (my) preferred way is the Dollar-Cost-Averaging of buying some 'trustworthy' assets and keep them for 10-20-30 years (when I will need them in my later-later years and/or pass them down to the next gen).
Re: Show HN: Double – Design and invest in your own stock index
#100how does this work with taxes? When an ETF rebalances, there is no tax impact, but wouldn't there be a tax impact with this tool as you're individually managing the stocks?
Short answer is yes there is a potential tax impact while rebalancing, but this is often a benefit due to the opportunities it presents to tax loss harvest, which we enable on accounts that are sufficiently diversified. With an ETF there is still a tax impact it's just shifted to the holder of the instrument who gets to decide when to sell or buy.
With an ETF, I can hold it for 20 years, and the value keeps compounding.
However, with this other method, each annual rebalance takes value out of the account. Unless I'm sure I can outperform an ETF with this active rebalancing, this tool would have worse outcomes.
If I am trying to optimize my portfolio, it seems I should choose ETFs that are composed of the equities I want and use current income to attempt to rebalance (e.g. purchase underperforming equities, instead of selling high performing equities to buy underperforming ones).
This tool seems like a worse strategy?