Last updated: 3 Jul 24 23:17:18 (UTC)

Michael's Client Newsletter #148, July 2024

Greetings Valued Clients, welcome to my July Client Newsletter #148 for the goal-focused, long-term, equity investor.

This issue is one of the longest and chock full of content! If you are pressed for time, or attention, may I humbly suggest that you at least consume the first three items: 1) the video interview; 2) my mid-year client letter, and 3) Nick’s Client’s Corner regarding re-balancing.

I wish you and your family a wonderful 4th of July!

-Michael

Capital Group on Bloomberg

Mike Gitlin, CEO of Capital Group, joins David Rubenstein on Bloomberg Wealth. It is only 23 minutes. At a minimum, watch the first 12 minutes and the last 5.

I recommend you share this video in your July client newsletter.

My 2024 Mid-Year Client Letter

My 2024 Mid-Year Client Letter to you is divided into two parts. First is a brief recap of our shared investment philosophy; second is my perspective on the current market.

Click the image above.

Nick Murray’s July Client’s Corner

Why We Rebalance

Every month Nick Murray publishes a brief client newsletter for the Lifetime Equity Investor. I hope you find it as valuable as I do.

Click the title/image above.

Previous newsletters are here.

This Month’s Financial Tip

UTMA/UGMA Minor Accounts

These custodial accounts, which are named for the Uniform Gifts to Minors Act (UGMA) and the Uniform Transfers to Minors Act (UTMA), let investors take advantage of the lower tax rate for children while saving for their future in mutual funds.

Anyone (parents, grandparents, uncles/aunts etc) can contribute up to $16,000 per child each year free of gift-tax consequences ($32,000 for married couples). This amount is indexed for inflation and may increase over time. Because contributions are made with after-tax dollars, a deduction cannot be taken.

For children under age 19 and full-time students under age 24 whose earned income is less than one-half of their support, the first $1,100 of earnings is tax-free. Earnings between $1,100 and $2,200 are taxed at the child’s rate; earnings above $2,200 are taxed using the brackets and rates for estates and trusts.

Any money given to a child is a irrevocable gift. When the child reaches the age of majority (18 or 21), the child is entitled to the account, and they can use the money for any purpose.

Visit American Fund’s UTMA/UGMA

Podcast of the Month

Is the world prepared for population decline?

China’s recent population decline underscores a long-term challenge more countries will face. Capital Group economist Jared Franz shares his views on how population decline will impact the global economy and how artificial intelligence could help fill the gaps.

Video Interview of the Month

Featuring Mark Casey

Capital Group CEO Mike Gitlin interviews Mark Casey, an equity portfolio manager based in our San Francisco office. As a veteran Silicon Valley investor, Mark explains why he believes “digitalization” is a powerful investment theme, how he thinks artificial intelligence will transform certain industries, and the lessons he learned from investing in Google.

Financial Book of the Month

Estate Planning Smarts

By Deborah Jacobs.

This is certainly the only estate planning book you’ll ever need. Highly recommended.’ -Nick Murray

Money Memes and a Little Humor

P.S Did you find value in this newsletter? Don’t keep it a secret! Feel free to forward this email to your friends.

Resources

About Me

Michael Paulding Thomas Financial Advisor, Registered Representative, Securities Principal, Series 6, 26, 63, 65, Life

For over 34 years I’ve tried to build my business by offering a second opinion to those who may need investment advice. As a result, my business now comes almost exclusively via introductions from existing clients. So, if you’re approached by a friend who may have questions about investing, please let them know that I will find the time to listen, and I’ll do my best to help.

^{Securities offered through Innovation Partners, LLC. Member FINRA/SIPC}