Amanda Macias, provided by Published 6:20 am, Sunday, March 2, 2014
Miami is attracting the LeBron James of Wall Street, the Dwyane Wade of Greenwich equity, and the Chris Bosh of Boston — financial titans who are relocating to pay less in taxes and maintain a luxury lifestyle with a glittering social scene. It's already the 2nd most popular financial hub in the country after NYC, and The Miami Downtown Development Authority is doing everything it can to make itself attractive to bankers through an initiative called the DWNTWN campaign.
Lloyd Blankfein and Leon Black are rumored to have bought Miami condos recently, and the latest hotshot to move his business there is Mark Spitznagel, founder of hedge fund Universa Investments.“Florida’s business-friendly policies ... offer the perfect environment for us as we expand,” said Spitznagel. “I would expect to see more firms like Universa voting with their feet and relocating to a more hospitable business and tax environment, especially as many local governments are trying to tighten their grip on businesses.”The nightlife and beaches don't hurt either.Miami is a financial gateway to the Americas.
While New York remains the undisputed center of the hedge-fund universe, there are approximately 70 hedge and private equity funds now headquartered in Florida.Everest Capital, which manages an estimated $2.3 billion, is headquartered in Miami along with private-equity companies like Trivest and HIG Capital.And with the growing Latino market, setting up shop in Miami means capitalizing on a growing Latin American client base.
Lower taxes mean more cash in your pocket for what matters.In Florida, there are no individual income taxes, no estate taxes and no capital gains taxes.So if you think about it, a hedge fund manager reporting $1 million in income can expect to pay only the federal government, whereas his counterparts living in New York City and Connecticut will fork over an extra $104,300 and $67,000 respectively.Like taking advantage of Miami's many luxury shops.
Leading the nation in luxury car sales, Miami is an epicenter for extravagent and exotic cars.
Almost 14% of all cars sold in Florida are from luxury brands compared to 11% in New York.Even more interesting, the 2013 median household income in Florida is less than New York, at $42,751 and $60,663 respectively.