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Agenda

The Navy Seal motto is “The Only Easy Day Was Yesterday.” Tomorrow won’t be easy, but it can be easier if you know what to do. As he celebrates his 66th birthday this year, Neal Milch is giving back to the laundromat multi-store owner community which has supported his family for decades. The most valuable gift is KNOWLEDGE, which lasts a lifetime.

The agenda topics are highlighted below. This presentation is packed with high-value information, so we have allocated three hours plus time for questions and answers. Click here to RSVP for this free event. For those traveling from outside the New York area, Laundrylux will provide complimentary hotel accommodations. To secure your reservation, please call Inessa Ramos at 646-397-1224 to make arrangements.

“The Milch Family Office presentation will convey actionable knowledge to use (or not) as you think about how to manage your financial affairs with sophistication and impact in a rapidly changing world. It will be provocative, intense, and packed with information. If you received an invitation then it is relevant to your family. This agenda might change your life; it certainly changed mine.” 

— Neal Milch

MFO Presentation Topics

First, Some Numbers

• Deviation from the mean; municipal bond yield vs treasury curve

• Z scores – probability of variation

“It’s Not Different This Time:” 98% of Active Managers Underperform S&P 500 Index Over Last 30 Years. Your Broker Will Fail.

• Understanding why your manager missed the benchmark

• Gross returns vs. net returns

• Probability of beating benchmarks

Investment Managers & Advisors: How They Mislead & What We Care About

• Statements are intentionally misleading; understand the true purpose of statements. Benchmarks and contribution to performance.

• “Window dressing” for EOY — understand deliberate manipulations

• When a manager recommends Buy or Sell, she must be right twice

• Investment Advisors (brokers) are not fiduciaries

• Distribution fees and why an investment is “on the platform”

• Ask the tough questions which make brokers uncomfortable

• Managers must have a market view. What were the incentives for a buy?

• You must have a market view, or you can’t coherently manage your money. What does it mean to have a market view?

Pattern Recognition: “I’ve Seen This Movie Before”

• Muni Bonds

  • Buying actions relative to treasury
  • Own directly or through bond funds?
  • Bond fund fees as % of return
  • Tax free yield vs. tax adjusted returns
  • Use of brokerage accounts to hold specific positions; annual fees repeating
  • Reinvestment risk

• Equities

  • Stocks move based on what factors? Earnings grow based on what factors?
  • Multiples vs changes in interest rates
  • "Buy when you want to vomit”
  • The SPX: how weighting has changed over time; market signals to BUY
  • The SPX: what is consequence of it being market cap weighted?
  • Geopolitical disruptions: a buy or sell signal?
  • The 5-Year Cycle

• Distribution fees and why an investment is “on the platform”

  • What is it? Why important?
  • 72 and the interest rate
  • Time moves quickly: a down year and TVM impact

• Alternatives — Private Equity, Hedge Funds & Your Family’s Interests

  • Layers of fees
  • What is your liquidity premium?
  • What is your hurdle rate and required ROI for the risk? Lock-ups, opaqueness, delayed reporting, “expected return”
  • What should be private capital returns?
  • Fees paid on committed capital
  • LP commitments are leverageable assets by PE managers
  • How banks generate interest income by offering SBL debt against PE investments
  • Investment Managers, alt investments, and going “off the platform” (lock ‘em up)
  • "Selling” the platform to future PE sponsors (lock ‘em up)

Real Estate: Key Metrics & Learnings

• The housing shortage

• Prices — do they come down?

• Use depreciation wisely

• Floating rate debt & caps

• Fannie Mae financing

• Sell assets with floating vs fixed interest

• No free lunch — rents & opex

• Operator experience in specific asset class; able to step in?

• Buy a REIT for similar exposure?

• A deal that crushed vs a deal that’s struggling — learnings.

LRE: Intersection of MFO and the Laundromat Business

• The Laundrylux Real Estate (LRE) Strategy

  • Leverages 50+ years industry experience combined with Milch Family Office real estate sophistication
  • Dedicated team creating real estate opportunities

• LRE Team Value Add

  • Market-specific site search (digital and in-person)
  • How MFO leverages real estate brokers
  • Demographic & competitive analysis: a path to AI integration
  • GC & installer identification and management
  • LOIs
  • Lease negotiation
  • The Proforma
  • Property acquisition, underwriting and landlord management
  • Tax, Legal, Financing Consultation

• LRE Creates Strategic Partnerships

  • MFO partners with select investors to purchase real estate anchored by laundromats

The Economy: What You Must Pay Attention To

• Markets follow liquidity

• The Fed cycle

• Inflection points for key economic events

• “No free lunch” again

• Manager earnings commentaries for key indications in “real time”

• Macroeconomic data looks backwards — how to look forward

• Governments are terrible allocators of capital, so sectors to avoid

• Government regulation (Dodd Frank) helps which companies?

Taxes: Common Mistakes & Missed Opportunities

• Businesses should bear all their own costs on their own CC. Accounting faster and easier.

• Tax-loss harvesting is important, easiest way is to use

• Your tax return – understand thoughtful deductions

• SBL or portfolio interest deductibility

• Options/covered calls, & shorts taxable at ordinary income levels

Death: Estate Planning Essentials for Mortals

• Wills!

• Trusts!

• $18k gifting

• 529 Plans

  • Public and private colleges, post grad, community college, tech/vocational
  • $10k limit for private high school tuition

• 529 plans allow acceleration

• Estate & Gift Tax Exemption

• Get the company out of the estate

• Use GP/LP structure to benefit from “Lack of Control” & “Lack of Marketability” for discounting

• Best assets to gift through GP/LP

• Be thoughtful when valuing assets — get paperwork done and be ready to transfer at optimal time

Q&A

We will answer your questions live at the event. You will have an opportunity to email questions of general interest in advance. Since we are not brokers, we do not give advice on specific stocks; please focus on questions of wider scope. For example, a question might be “What do you think about defense stocks if Trump is elected?”, instead of “Should I buy Raytheon?” Or “What’s your thinking on the long bond and the impact on stock and bond valuations in 2024-2025?”, or “Is it late in the cycle to invest in multi-family housing?”

The information presented is exclusively for attendees only so recording is not permitted.

Turn phones off during the presentation as a courtesy to the speakers and the audience.

Click Here to RSVP

QUESTIONS?

Call Inessa Ramos at 646-397-1224 or email iramos@laundrylux.com

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