A plan-based benchmark changes the advisor’s role from portfolio reporter to progress partner. Instead of reviewing performance against a market index, the discussion can focus on metrics such as cash flow resilience, adherence to the risk budget, and after-tax outcomes.
Modern direct indexing tools, using sophisticated technology, can identify tax loss opportunities on a daily or even minute-by-minute basis. As time progresses, I believe more advisors will see the potential of direct indexing.
