Investment News – June 20, 2022

This Investment News article weighed the pros and cons of direct indexing, a strategy that uses individual stocks instead of ETFs and funds as the building blocks of an indexing strategy. The article states “David Schneider, founder of Schneider Wealth Strategies, is also a fan of direct indexing for tax optimization purposes, but he said advisers and clients need to be weighing the added fees.”
Mr. Schneider explains that “Direct indexing offers more potential tax-loss harvesting opportunities than a conventional ETF or fund approach, although these benefits are probably overstated,” and that with direct indexing, “There’s a high degree of customization, so it can be a good strategy for investors who want to avoid exposure to specific companies or industries. But one of the downsides to direct indexing is potentially higher costs versus an ETF or index fund.”

Read More: InvestmentNews.com

Forbes.com – May 25, 2022

This Forbes article discusses the Federal Reserve, interest rates and the risk of a recession.
In it, David Schneider points out that “An economic downtown is undoubtedly possible. That said, it is worth noting that the yield curve that has the best track record of predicting recessions”
He notes that as of the date of the article, the 10-year Treasury yield minus the 3-month Treasury bill yield remains positive- and that historically, that has put the odds of a recession in the low single digits.

Read More: Forbes.com

Marketwatch.com – January 19, 2022

This article discusses HELOCs and how to get the best rate on them.

In the article, David Schneider states that “Generally, I advise people to go to their local banks because they will be interested in those loans.”

The article also says that “borrowers may be surprised by just how much rates go up after the promotional period ends, notes Schneider, adding that a borrower could start out at a rate in the 2% range that then jumps past 4%.”

Read More: Marketwatch.com

Marketwatch.com – September 8, 2021

This article outlines the benefits and risks of home equity lines of credit.
In the article, David Schneider states that “borrowers need to make sure they can afford higher payments when rates go up,” adding “Don’t be fooled by teaser rates,” which might be a low rate for the first six months, but then will likely rise.
He also notes, “now may be a good opportunity to obtain a HELOC — even if you don’t end up using it — because market dynamics are favorable,” adding “Compared with a year ago, home values have gone up, the unemployment rate has fallen, and interest rates remain low, while banks are more likely to lend than they were in spring 2020.”
The commentary concludes with Mr. Schneider saying, “Anyone taking out a home equity line should use it wisely,” and adding, “They’re a wonderful tool if used wisely; if not, they can dig somebody into a deeper hole.”

Read More: Marketwatch.com

Investor’s Business Daily- May 7, 2021

Investor’s Business Daily recently asks David A. Schneider about international investments. In the article, he pointed out that “given the recent performance of international markets, people aren’t necessarily thrilled about international diversification,” and added, “but I tell clients that a substantial part of the world’s wealth is outside the U.S,” explaining that global stocks serve in diversifying a portfolio, noting how the S&P 500 lost money from 2000 to 2009. He stated, “to avoid the risk of a lost decade, it’s important to have international diversification.”

He went on to say, “If a client wants to exclude a certain country, I may reply that I don’t particularly like that country either. But successful investing isn’t about whether I’m personally enthusiastic about a country or region. It’s about adhering to a disciplined process and gaining exposure to areas” that enhance the overall portfolio.

Read More: Investor’s Business Daily- May 7, 2021

Realtor.com- April 26, 2021

This article talks about 5 good reasons to refinance a mortgage. In it David Schneider points out that savings from a refinance can be used to boost retirement savings and also suggests that some homeowners might want to refinance to a fixed-rate “particularly if something is changing in your life, like if you’re about to retire or you’re on a fixed income.”

Read More: Realtor.com