Private wealth advisor Patrick Dwyer forecasts a secure and much welcomed sunny financial climate for Miami.
Patrick Dwyer at Merrill Lynch in Miami, where he oversees $2.5 billion in assets for some of the city’s wealthiest individuals.
At 45 years old, Patrick Dwyer may be one of the youngest financial advisors at Merrill Lynch to head a top-10 team of his own, but he’s also one of its most skilled. From his Miami base, he oversees a whopping $2.5 billion in assets for some of the city’s wealthiest individuals. Here, Dwyer answers the questions on the top of all Miamians’ financial minds.
Describe the wealth in Miami.
What characterizes wealth here is pretty consistent with other places in the country: 80 percent is generated by your client, the entrepreneur; about 20 percent is inherited.
Your clients’ financial priority is trying to maintain their “Miami” lifestyle?
Most of my clients need annual returns of 5 percent to 8 percent to meet their goals; Miami is an expensive place to live. But where are you going to go to get that? What are you going to do?
You think rumors that the bull market in stocks is about to explode, bubble style, are exaggerated?
It’s a relatively decent time to be investing [in stocks]. Companies are being managed for the benefit of shareholders and generating a lot of cash.
Navigating the bond market is a tricky matter.
The 30-plus-year bull market in bonds is over. Will interest rates go up? Perhaps not substantially higher, but it’s going to change the returns on America’s favorite investments. Most investors have been lulled to sleep about interest rates, and it’s going to be a rude awakening.
Will the dollar’s rise affect Miami?
The assumption at the luxury end of the real estate market is that everything is fine because there’s no leverage; people are putting down big deposits.
So if the dollar rises, their housing purchase becomes more costly, which would mean what?
It may reduce demand from foreigners, and that could be a problem.
Longer-term, you see the sun continuing to shine on Miami’s real estate—and Miami’s wealthy citizens.
This is a fun, sophisticated city with the kind of infrastructure and amenities you don’t find anywhere else on the East Coast except New York, and it’s a tax-friendly, lower-cost environment. Dwyer & Associates, 200 S. Biscayne Blvd., Ste. 4500, Miami, 888-657-3767