Happy almost year-end! We'd like to introduce you to our Quarterly Download, a place where we update you on relevant financial planning and investment issues in addition to any news on Miracle Mile and our team.
Read on for more about the five traits of wealth building, the Metaverse, and two Miracle Mile weddings!
What are the five most common approaches families employ to successfully grow their assets over time?
1. Have a detailed financial plan and stick to it. Think of it as the guard rails of your financial decision-making process, not a one-time exercise.
2. Don’t trade your wealth, invest it for the long-term and try not to touch it or look at it very often. Investing is mostly about patience, not action.
3. Over-plan for retirement. Expect to live longer (at least one spouse over 95) with sufficient cash flow to easily maintain your desired lifestyle.
4. Actively find ways to reduce taxes. Tax law changes constantly and should be considered at every step from investing to gifting and estate structure.
5. Consider incorporating charitable giving into your financial life. In addition to providing a substantial double-tax break, studies show that giving to others creates more happiness (and long-term health) than spending it on yourself.
KEY TAKEAWAYS
Here are some important updates from the past quarter:
Potential End of Backdoor Roth Conversions:Provisions in the Build Back Better bill, which is currently being negotiated in the Senate, prohibit backdoor Roth IRA conversions and mega backdoor Roth 401(k) conversions. These changes are significant and could take away a key financial planning tool. We are watching the outcome closely and will adjust our financial planning assumptions accordingly.
Powell, Inflation, and Omicron: The newly reappointed Federal Reserve Chair Jerome Powell stated that inflation should no longer be regarded as transitory and that the Fed will consider pulling back its easy-money policies soon. This comes on the heels of the Omicron variant and its potential effects on the supply chain and global travel. This is a complicated way of saying that interest rates could go up sooner and more than previously anticipated. Our Investment Strategy Group continues to favor stocks that benefit from higher rates such as financials, investments with variable yields (such as real estate), and is underweight fixed income. For our fixed income allocations, we are continuing to use shorter-duration portfolios which perform better during a rising interest rate environment.
The Future in the Metaverse: The idea of a metaverse, a digital world that allows people to interact virtually through augmented and virtual reality, has caught the attention of both legacy and insurgent companies looking to profit off this new concept. A few examples over the last month include Facebook rebranding to Meta, Nike filing several metaverse-related trademarks, and Coinbase developing blockchain technology that supports the metaverse. We view the notion of the Metaverse as positive, which will be an area of growth over the next decade. Top companies like Amazon and Microsoft will continue to dominate in the field, but new entrants will also find success. Overall, we favor the technology sector in the long run and are continuing to evaluate rapidly evolving sub-sectors such as artificial intelligence, blockchain, and cloud services. These areas are changing rapidly and will likely have a big impact on our lives over the not-too-distant future.
This announcement comes on the heels of introducing our Portland team earlier in 2021 and is the fourth team we've added to Miracle Mile in two years.
As we grow, we're continually increasing our capacity to serve our clients and enhance our expertise in all areas of wealth management.
A huge congratulations to our own Danielle Bronner and Sara Wendt, both of whom celebrated their weddings earlier this quarter! Both brides have returned from their honeymoons (Italy and St. Barts) and we are very excited to have them back at work (although they are not as enthusiastic).
This quarter, we also had the pleasure of hiring three new employees (one advisor and two client service associates).
WelcomeBill, Randy, and Simon! One is a baker, one is a Dallas Cowboys fanatic, and one has owned over 30 cars... Can you guess who's who? (Check their bios for the answers).
Disclosures: Miracle Mile Advisors LLC (“MMA”) is a registered investment advisor. Advisory services are only offered to clients or prospective clients where MMA and its representatives are properly licensed or exempt from licensure. The information provided is for educational and informational purposes only and does not constitute investment advice and it should not be relied on as such. It should not be considered a solicitation to buy or an offer to sell a security. It does not take into account any investor's particular investment objectives, strategies, tax status or investment horizon. You should consult your attorney or tax advisor. Past performance shown is not indicative of future results, which could differ substantially. All information has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. There is no representation or warranty as to the current accuracy, reliability or completeness of, nor liability for, decisions based on such information and it should not be relied on as such. This message is confidential and subject to terms at: https://miraclemileadvisors.com/disclosures/ including on awards/rankings, confidentiality, legal privilege, viruses and monitoring of electronic messages. If you are not the intended recipient, please delete this message and notify the sender immediately. Any unauthorized use is strictly prohibited.
Miracle Mile Advisors, 11300 W. Olympic Blvd., Suite 800, Los Angeles, CA 90064, 310.246.1243
