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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,

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00:00:37,840 --> 00:00:43,200
where you get valuable information you just
can't find anywhere else to thrive in today's

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00:00:43,280 --> 00:00:49,000
trying times. You need the Financial
Survival Network now more than ever. Go

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00:00:49,079 --> 00:00:55,439
to Financial Survivalnetwork dot com and get
your free newsletter and gift. Financial Survival

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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

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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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00:13:05,840 --> 00:13:11,039
sold Amazon, Barnes and Noble,
or Books an Alien wherever fine books used

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00:13:11,080 --> 00:13:15,919
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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00:13:18,720 --> 00:13:26,080
David or myself, shoot me an
email kl Atcarrieluts dot com. And there's

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00:13:26,120 --> 00:13:31,240
a link to davidsite in the show
notes to this interview on Financial Survival Network

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00:13:31,279 --> 00:13:33,879
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

155
00:13:50,639 --> 00:13:56,360
times. For the latest, go
to Financial Survivalnetwork dot com. Financial Survival

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00:13:56,399 --> 00:13:58,799
Network now more than ever,