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Mastering Retirement Portfolios in a Volatile Economy: David Wright #5970 · Financial Survival Network

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  So the book is out now to talk to individuals about how fragile things are
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  in the market and how not to be swayed necessarily by the things you hear
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  on media so much major media, large media. There's everybody out there in
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  the mutual fund world, the stock and bond world, the ETF world,
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  wants to sell you their idea. And I think when you listen to all
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  that stuff, you can be let into the wrong path of how to invest
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  more purpose and retirement. You are listening to Carrie Let's's Financial Survival Network,
• 0:37
  where you get valuable information you just can't find anywhere else to thrive in today's
• 0:43
  trying times. You need the Financial Survival Network now more than ever. Go
• 0:49
  to Financial Survivalnetwork dot com and get your free newsletter and gift. Financial Survival
• 0:55
  Network now more than ever. Ed Welcome you are listening to and watching the
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  Financial Survival Network. I'm your host, Carrie Lutz. Hey, we're in
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  twelve, thirteen, twenty three. The year is going to be over before
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  you know it. New book is out. We've talked about it before,
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  but you really got to check it out. It is called Bonfire of the
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  sanitays reset your retirement portfolio for today's financial lunacy and if anything describes what's happening
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  in the world the economy, it's financial lunacy. It's written by David Wright,
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  you know him well and financial expert author. David. It's great to
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  have you back on the show. How are you here? I am doing
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  well? Or a Wednesday the home day? Here, get over the home
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  day? Yeah? Yeah, you and me? Both, you and me
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  both? So hey your book, yes, sir, tell us why you
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  wrote it? Well? Originally I started writing it three years ago to talk
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  to perspective send just interested parties about why it's important to know what your money
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  is for purpose over performance. If you're later in life, probably the money
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  you built over your four oh one K and your work career is probably more
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  for supporting your social Security or pension checks and understanding that there might be a
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  slightly different discipline of how you invest for that situation. But you know,
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  Carrie, the only constant in our world has changed, and with the COVID
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  crisis in twenty twenty, the book took on a whole new meeting the financial
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  lunacy that occurred after COVID, with the economy shutting down and the black swan
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  event of an economy shutting down, and then you know trillion, almost two
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  trillion printed cash back into the economy to provide businesses and individuals with you know,
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  their their their little ouse of gold. Has set the whole planet a
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  fire here with what the Feds are doing. The FEDS reacted, as I'm
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  sure you're aware and talk about all the time, very slowly to all of
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  the twenty twenty one revelry, with the recovery in the market, with all
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  this respending money and a lot of free time on people's hands. People were
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  out taking trips, traveling. The Feds kind of stand on their hands for
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  much of twenty twenty one and didn't raise rates. So now we're in a
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  situation where Feds have raised rates by five hundred and fifty basis points on the
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  short fixed interest rate, and now we're in an inflation world that took old
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  in twenty twenty two. So the book is out now to talk to individuals
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  about how fragile things are in the market and how not to be swayed necessarily
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  by the things you hear on meat so much. You know, major media,
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  large media, there's everybody out there in the mutual fund world, the
• 4:09
  stock and bond world, the ETF world wants to sell you their idea.
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  And I think when you listen to all that stuff, you can be let
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  into the wrong path of how to invest more purpose and retirement, because this
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  market can turn on a dime. We've seen it happen. We're waiting for
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  fed's Chairman Powell to make a decision today on which direction interest rates are going
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  to go. We think they're going to hold I'm pretty sure that. I
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  think the whole world isn't sure. Is pretty sure of that. But the
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  big million dollar question is what will happen next year? Will the Feds start
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  to pivot? And I definitely don't believe they will soon. I think they're
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  going to hold rates higher for longer. And this book addresses that real situation
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  next year, that if the old rates higher for longer, how that's going
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  to impact the markets, and how that could impact your retirement, and how
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  you only get one shot at this. So it's important to get a copy
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  of this book. On Fire The Sanities follow us step by step process of
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  the reasons why it's important to invest your purpose and take you through a client
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  examples of what happened in two thousand and eight, and why it's important to
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  not make the same mistakes that folks made back in two thousand and eight.
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  All right, so you know what they say, David, A smart person
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  learns from their own mistakes, but a truly wise person learns from the mistakes
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  of others. You know, how do we learn from others' mistakes here,
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  so we aren't condemned to repeating them? Well by buying this book, not
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  to put to fight a point on it. It's important to open your eyes
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  up to professionals, individuals who've been doing financial advising for many, multiple decades.
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  This is my going on in my fourth decade, and when you look
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  at mistakes that are made by other folks five ten to fifteen years back who
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  believe that they could grow their way through retirement in the midst of what happened
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  in the banking crisis of two thousand and eight. We're trying to help our
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  readers avoid making the mistakes of investing all for growth, not being strategic with
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  dividends and interest, understanding that you need to work with an income advisor or
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  at least have some sort of relationship with someone that understands how to produce income
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  in a reliable manner that would will allow you to never have to jeopardize your
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  principle. You know, one of the things that we saw in two thousand
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  and eight, I would meet a lot of spouses in workshops and webinars and
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  just meetings that I would hold here at the office, a lot of surviving
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  spouses, a lot of femails. Those skies tend to kick the bucket first,
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  But a lot of the gals that would come in here who now have
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  been handed this task of managing the pot of money that their husbands had managed
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  prior to two thousand and eight. The ride back from two thousand and three
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  to two thousand and seven and eight was pretty nice. After the World Trade
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  Center collapsed in two thousand and one, markets finally leveled off in two thousand
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  and three had started to climb back up well. A lot of the spouses
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  that invested in that client from two thousand and three to two thousand and eight
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  invested pretty much all in in growth things growth. The mutual funds, aggressive
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  stocks, and their advisors were pretty much drinking that ool aid as well.
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  But what a lot of surviving spouse is found out after the fact when the
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  market started declining in two thousand and eight and nine and the banking issues,
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  we started seeing a lot of portfolios that had been drawn on. People pulling
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  out their rm ds the required minimum distributions or just drawing income out of a
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  portfolio that's actually shrinking by almost fifty to sixty percent is a suicide strategy because
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  basically what you're doing is liquidating principle, you're selling shares when they're worthless.
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  Therefore, you can never humanly recover from that unless you make a pack that
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  once it's hit the bottom, you just stop using the money and let it
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  recover, which can take me be five to ten years to recover from that.
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  So this book is to talk about the experiences that I've had in the
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  ways that we go about understanding how you should invest. Everybody's situation is different,
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  so I think you can learn a lot by the thirty five years plus
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  that I've done this. All right, So hey, talking about lessons learned.
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  What do you think is the most important lesson of this book? I
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  think that the most important lesson of the book is first team from an income
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  advisor, the experience and knowledge that to invest for income dividends and interest is
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  to know how of what individual securities that need to be tapped to produce the
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  income. Broadly speaking, individual securities, individual preferreds, corporate bonds, and
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  all of those types of things. People don't know how to stick those things.
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  Most advisors don't want to work with clients on those things because either they
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  don't know enough about them, don't know how to buy them, don't know
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  how to manage them, or have the back office support to continue to monitor
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  monitor them. So the biggest aha from this book is make sure that whatever
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  you take it from your pot of money in retirement is the dividend and interest
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  of the share you own, not the share it self, especially with what's
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  going to happen probably in twenty twenty four and beyond, because it isn't going
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  to take very long for you to shrink a portfolio once you start needing to
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  draw from it. And most people don't understand that there's two phases, the
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  accumulation phase when you're building the pot, and the distribution phase when you're dis
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  distributing the pot. Both of those phases need to be followed. And if
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  you're in the distribution phase, your sixties and seventies and you're still invested,
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  like you're in the accumulation phase, you're going to be in a position where
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  you're going to be probably withdrawing shares or principle, When I see a lot
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  carry our individuals taking FAU income, we call it FAU income because their advisor
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  basically just set them up on a withdrawal plan to withdraw a certain amount of
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  shares of their portfolio, hoping that the shares they don't withdraw or income grow
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  in value during the period of time that they're taking money out. Well,
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  I have a better way. The better way is to actually not liquid eight
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  shares at all. Just understand that whatever you've built at this point in your
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  life should be the pot that you're trying to sustain for the rest of your
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  life. And if you can live off of that pot of money, getting
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  five to six percent liable income from it and never deviating from that. Changes
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  obviously need to be made. From a geopolitical standpoint, we don't know what's
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  happening with electric vehicles, those sorts of things. Changes need to be made
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  to the investments inside the pot. That's why you should probably work with an
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  income advisor to make sure that you're making the corrections and the changes that need
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  to be made, but understanding, don't sell shares, live off the income.
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  I like that and it sounds like sound advice. David, How do
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  we get the book? How do we connect with you on the web?
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  Well, you can connect with me on the web, first of all,
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  with Rightfinancialgroup dot com. Wrighd is the spelling. Bonfire ofthsanities dot com is
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  how you can get this book into your hands. It's a pretty easy read,
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  about one hundred and seventy seven pages, flows pretty quickly, and you
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  can get again the book at a bonfire ofthsanities dot com or wherever books are
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  sold Amazon, Barnes and Noble, or Books an Alien wherever fine books used
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  to be sold, right exactly. All right, Hey, we appreciate you
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  coming on again, David talking about the book. They've got a question for
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  David or myself, shoot me an email kl Atcarrieluts dot com. And there's
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  a link to davidsite in the show notes to this interview on Financial Survival Network
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  dot com. Just click it and it'll take you right to David's site.
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  And while you're on our site, please sign up for a free newsletter.
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  I think you'll find it very useful, David, always a pleasure. Thanks
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  so much for coming by, Harry, thanks for letting me be on.
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  Thanks for listening to Carrie Letz's Financial Survival Network, your solution to today's trying
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  times. For the latest, go to Financial Survivalnetwork dot com. Financial Survival
• 13:56
  Network now more than ever,