Financial Review

I hope you’ve enjoyed my biweekly updates, stories, strategies, and news items. Here is a year in review. Please see the bottom of this email for an index of this years letters.

A new presidential administration and tax law changes proposed

Upon taking office, the new administration drafted a proposal to change the tax code. We hosted a webinar with a tax expert earlier this year and have been following the development closely. As of Monday, it appears that nothing will happen in 2021. There was not enough support for the bill to make it through the Senate in its current form.

The Texas Freeze

In February, those of us in Texas saw a combination of record low temps and deliberate power outages. Let’s hope this was a one-time event.

Rise of Crypto

2021 has been quite a year for Crypto currencies. Many institutions have taken positions in Bitcoin, making portfolio allocation recommendations, and beginning to take this new asset class seriously. The release of a futures ETF has also made it easier to gain exposure to Bitcoin in traditional investment accounts. It’s been a volatile ride on its way to being worth double what it was 12 months ago.

College Athletics and Compensation

As a former football coach, I take an interest in college athletics, especially when it has to do with finances. So called “Name, Image, and Likeness” rules have created an opportunity for athletes to earn income while in college. It’s already changed the recruiting landscape. My alma mater, UT Austin, saw their top recruit, decommit from UT, go to Ohio State one year early (skipping his senior year of high school), sign a deal worth millions, and then transfer back to UT for the 2022 season.

Nexus Events: Tax Shredding, Wine Tasting, and Business Owner Forum

We hosted three events this year. One was a private digital blind wine tasting/market update. It was a blast having wine shipped to our houses, getting a few tidbits about the market, and having a sommelier guide us through the wine tasting.

We hosted an event for business owners in September. We had a dynamite panel of business transition experts including a father/son that had been through a transition. We received awesome feedback and plan to make this an annual event.

We also had our annual client appreciation event, with Tax Shredding and BBQ. Nothing is more satisfying that dumping old tax docs in the dumpster. We had a wonderful time celebrating our clients. If you were unable attend, we hope you can make it next year.

Housing Prices

Low interest rates and stimulus have led to a rise in housing prices all the country. Those that recently purchased have seen a huge jump in equity and those that were planning to purchase have had to regroup. We also have seen a rise in home renovation plans, but labor shortages and supply chain issues are affecting those projects. It will be interesting to see how 2022 fares in this area.

Price Inflation

As with housing prices, we’ve seen low interest rates and stimulus lead the highest levels of price inflation in 40 years. Inflation has profound impacts on our financial plans. Not only are prices on everyday goods rising, but with interest rates near zero, we’re seeing negative real returns on our cash. Equity markets can be a place to keep up with inflation. But stock valuations are historically high, so prospects for keeping up are less certain. This is something we’ll be watching closely into the new year.

Eppes go to Disney

With our kids turning 7 and 4 this year, it was an ideal time for Eppes to visit the most magical place on earth. Drew’s (4) favorite was shooting aliens on the Buzz Lightyear ride. Anne and Cora’s (7) favorite was Harry Potter World. Although Cora did not appreciate the fire-breathing Dragon at Gringotts.

I’ve linked to my 2021 newsletters below. Please feel free to share with friends and family.

Merry Christmas and Happy New Year!!

Andrew Eppes, RICP®

Index of 2021 Newsletters

Moneyball refined baseball by understanding purpose

Biden Tax Proposals

Tax Strategy: Bunching

The Opposite of Spoiled: Talking to Kids about Money

Human Life Value

Spring Cleaning Our Finances

Bo Jackson Moments

Last minute Tax Strategies

The Retirement Spending Smile

Believe in something or fall for anything

On the Same Page

Bobby Bonilla Day

Tax Webinar Takeaways

Balancing saving for College and Retirement

Ten Years

Am I Using my Income Wisely?

“Retirement vs. Financial Freedom”

Tips to Keep your Financial Data Secure

Net Worth Tracking

Would you Eat the Marshmallow?

Andrew Eppes is a registered representative of and offers securities and investment advisory services through MML Investors Services, LLC. Member SIPC. Nexus Advisors, LLC is not a subsidiary or affiliate of MML Investors Services, LLC, or its affiliated companies. 14241 Dallas Parkway Suite 1200 Dallas, TX 75254 972-348-6300. The idea of retirement means different things to different people. CRN202502-1751382

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