Business Transformation | 01.24.24
What’s Coming in 2024? A Letter From Mike Miroballi, CFA
by: Mike Miroballi, CFA
Greetings, BISA members!
As we reflect on the challenges and opportunities of 2023, it's evident that the year presented a dynamic landscape for the economy. Inflation concerns, coupled with anticipated rate increases, marked the economic terrain. Despite conflicting data, higher rates and various real estate and banking challenges, the economy exhibited resilience. Notably, the year witnessed the unexpected regional banking crisis, resulting in three of the largest bank failures in U.S. history.
Amidst these challenges, conservative investors found solace in securing the highest guaranteed rates in 25 years. Fixed annuity products, bank CDs and money markets experienced record-level inflows. Investment programs underwent a reversal in asset inflow patterns, favoring annuities over advisory products. Those programs maintaining a balanced approach and client-focused planning saw continued growth through new client acquisition and increased wallet share.
Looking ahead to 2024, we face an election year, ongoing Federal Reserve actions to guide the economy and market reactions to both. Additionally, the impending expiration on December 31, 2025, of the Tax Cuts and Jobs Act of 2017 adds another layer of complexity, requiring thorough preparation and planning for our clients.
The retirement landscape continues to evolve. Over 10,000 baby boomers are reaching retirement age daily and by the year 2030 all will have reached age 65. With approximately $40 trillion in qualified assets at last count at the end of 2022, the largest share owned by boomers, the shift from wealth accumulation to de-accumulation is accelerating. The greatest tax savings vehicles introduced in the 1970s are now becoming a tremendous source of tax revenue now and for the next few decades. Now is the time for our advisors to help our clients prepare for this. Most of U.S. workers’ retirement savings are in pre-tax accounts and ignoring the effect of taxes on your retirement income will have a dramatic impact on your retirement lifestyle and its sustainability.
This brings us to a central point — our clients need our help more than ever. In a world characterized by constant change, our role as advisors is to bring expertise, clarity and confidence to our clients through discovery, education, planning and advice. Despite external and internal challenges, we must stay true to our industry's core purpose — helping people.
We as leaders owe it to our clients, advisors and institutions to stay vigilant in our efforts to build and reinforce our investment programs with access to products, expertise, technology and a north star of always placing our clients’ interests first and foremost in every decision we make and every action we take. As leaders in our industry, within our financial institutions and for our advisors and the colleagues that support them, we set that example. Our persistent efforts to improve how we deliver advice and guidance to our clients demonstrates our commitment to our core purpose as stewards of our industry and why BISA exists.
As I conclude my term as BISA president at this year’s Annual Convention, I am proud of the association's impactful work. BISA has provided support for the exchange of ideas and experiences, the forum for networking opportunities, thought leadership and access to innovative technology for the betterment of our members and the industry. The growing number of first-time attendees at the annual convention last year signals a promising future for our industry and BISA.
To our resilient industry leaders, I express my gratitude. Serving as BISA president has been a privilege, and I am thankful for the support and leadership of Jeff Hartney and his dedicated staff. Your engagement, BISA members, fuels our association, and I am confident that we will achieve even more in the future.
I look forward to seeing you in Hollywood, Florida, at the Diplomat!
Warmest Regards,
Mike Miroballi
About Mike Miroballi, CFA
As president of the Huntington Investment Company, Michael Miroballi is responsible for leading the strategic direction, overseeing regulatory governance and setting priorities for the business.
Miroballi joined Huntington in February of 2017 after spending nearly 16 years at BMO Financial Group. He has over 30 years of experience in financial services. Miroballi spent the early part of his career with Merrill Lynch and Citigroup as a financial advisor. He obtained his CFA designation in 2000 and transitioned to portfolio management and trust investment management with Harris Private Bank, now known as BMO Private Bank, where among his accomplishments he led the creation of BMO’s open architecture outside manager and mutual fund platform. In 2007, Miroballi was appointed president of the bank’s retail broker-dealer, BMO Harris Financial Advisors. As president of BMO Harris Financial Advisors, Miroballi led the transformation of the business to become a leader among peers in the growth of investment advisory assets under management. Likewise, as president of Huntington Investment Company, he has led the transformation of the business to become a planning-based advisory firm with advisory assets growing more than five-fold in just over five years.