Jensen Makes Case for Direct Indexing

Michael Jensen is working to make tax-aware portfolio decisions easier to understand while helping Falcon Wealth Planning Inc. expand its advisory team, geographic reach and operating capacity.

As managing partner, Jensen has developed tax simulators that compare the potential tax implications of direct indexing with passive index vehicles. The tools help advisors illustrate how tax-loss harvesting and management of concentrated stock positions could affect a client’s after-tax results.

Direct indexing involves owning individual securities to replicate an index, allowing customization at the security level. Jensen sees the approach as an option for clients with concentrated holdings or high tax sensitivity.

His simulations support conversations about whether the strategy fits a client’s circumstances. He pairs those tools with advisor training on identifying candidates and explaining the reasoning behind recommendations.

The objective is to turn a technical discussion into a comparison clients can evaluate. Potential benefits depend on individual tax circumstances, portfolio characteristics and market conditions; simulated results are not assured outcomes.

Jensen’s responsibilities also extend to Falcon’s expansion. With client acquisition historically concentrated in a limited geographic base, he supported research into new markets where the firm’s fee-only, fiduciary positioning could resonate.

Working with marketing and business development colleagues, he helped establish local relationships and recruit regional advisors. Falcon now serves clients across all 50 states and has a repeatable framework for entering additional markets.

Jensen personally oversees $380 million of Falcon’s more than $2 billion in assets under management. Over the past 12 months, he added $150 million in assets under management and hired five certified financial planner advisors to support client growth.

As the firm expanded, he focused on the operating processes behind its client experience. His efforts included refining lead management and service workflows, introducing technology to reduce manual bottlenecks and establishing consistent service expectations.

The approach sought to align advisor capacity with a growing client base, addressing response times and workload before they became constraints on service.

Outside his paid advisory work, Jensen provides pro bono financial consultations to people facing debt or insufficient retirement savings. He works through their circumstances and develops actionable plans intended to be useful without continuing paid support.

His broader investment thesis is that direct indexing can become more widely used among tax-sensitive investors as technology makes implementation and explanation more accessible.

At Falcon, that view is taking shape through simulation tools and ongoing advisor education. Jensen’s focus is on helping clients understand the potential contribution of tax management alongside the other considerations shaping their portfolios.

His work links investment education with business infrastructure: giving advisors clearer ways to explain recommendations while building the staffing and processes needed to support a larger practice. Both efforts center on making planning more understandable and consistently delivered.