Online Financial Advisors
of 2024
FREC Online Financial Advisors Review
SERVICES
The main service offered by Frec is direct indexing, an investment strategy that lets you mimic the performance of a stock market index, like the S&P 500, by directly buying the individual stocks that make it up. Instead of a single fund, you directly own the underlying stocks in the index, proportional to their weighting in the index. Direct indexing potentially offers tax benefits by allowing you to harvest losses at the security level, something you can't do with a fund.
Frec offers four direct indexing approaches, encompassing US company stocks across large-cap, mid-cap, and small-cap categories. Frec additionally provides automatic tax-loss harvesting, portfolio rebalancing, and dividend reinvestment. Its strategies are based on the S&P 500, S&P 500 Information Technology, CRSP US Large Cap, and CRSP US Small Cap indexes.
Frec allows some customization of the S&P 500 index by letting you exclude up to two sectors and include or exclude up to 10 individual stocks. They also offer a portfolio line of credit and account portability.
PRICING
Frec's fee structure is simple – 0.10% annually, or $100 / year for a $100,000 portfolio. The minimum deposit required to open an account is $20,000. You can borrow up to 70% of your direct index portfolio through a portfolio line of credit. Frec's rate is always the Effective Federal Funds Rate, which is 1% lower than many of its competitor’s listed rates.
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$50,000 investment minimum
- Combines high robo investing technology with human advisors
- Low management fees
- Access to financial advisors whenever you have questions
- Customized, goals-based financial plans
